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Six Things Startups Need to Know About Seed Fundraising

  • 9.20.2017

Attorneys from WilmerHale's Emerging Company and Venture Capital Practice explore the most critical issues facing entrepreneurs and early-stage companies during our QuickLaunch University Webinar Series. Follow our Launch blog for key takeaways on topics relevant to the startup ecosystem. This month, we take a look at the seed fundraising process.

On September 7, WilmerHale Partners Jason Kropp and Jeff Stein discussed how early-stage companies should prepare for the fundraising process. They were joined by Jere Doyle, managing director at Sigma Prime Ventures and investor and advisor to dozens of technology startups. Here are several important areas of focus for startups thinking about raising a seed round:

  1. Focus on keeping things simple. See standard terms. Minimize transaction costs. Don’t create future hurdles.
  2. Get your legal house in order.
  3. Identify how much capital you need, and how you’ll deploy it.
  4. Carefully research investors and network relentlessly.
  5. Educate yourself on financing structures and terms.
  6. Don’t set your valuation too high (or too low).

Read more about raising capital and securing funding. You can also view the webinar slides and on-demand recording.