Seed round

How it works

Seed rounds in 2024 are larger and later than they used to be — what used to be a Series A is now a seed. A typical seed is $1M–$5M total, with a lead investor writing $500K–$2M and other funds filling out the rest. Companies at seed usually have a product live, some users or revenue, and are working towards a measurable PMF signal that unlocks Series A.

Related terms

• Series A round
  A Series A is typically the first priced round led by an institutional VC, with a $5M–$20M check size, requiring strong evidence of product-market fit.
• Pre-seed round
  Pre-seed is the earliest formal funding stage, typically $50K–$500K raised on a SAFE before a company has revenue or product-market fit.
• Valuation cap
  A valuation cap is the maximum valuation at which an early investment (SAFE or convertible note) will convert into equity, protecting the investor from being diluted if the company's valuation skyrockets.