Six Things Startups Need to Know About Seed Fundraising
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 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 . Here are several important areas of focus for thinking about raising a seed round:
- Focus on keeping things simple. See standard terms. Minimize transaction costs. Don’t create future hurdles.
- Get your legal house in order.
- Identify how much capital you need, and how you’ll deploy it.
- Carefully research investors and network relentlessly.
- Educate yourself on financing structures and terms.
- Don’t set your valuation too high (or too low).