Should you Raise a Seed+ Round?
Today, we\u2019ll talk about whether you should be raising a Seed+ round. In startup funding, you raise funding in stages. There\u2019s the seed stage, when you have developed the product to some level and potentially have some users. Startups typically raise $500K to $750K for this round. You don\u2019t want to raise more at this stage if you can help it, as you\u2019ll be giving away too much equity due to your low valuation. The next raise is the Series A raise, where you typically have an annual revenue run rate of $500K or more. At this point, you can raise $1.5M to $2M - or perhaps more if your growth rate justifies it. If you find your startup has raised a Seed round but is not quite ready for a Series A, then you may want to consider a Seed+ round. A Seed+ round is essentially another raise at the Seed level, usually with the same terms. The key to remember here is that each round of fundraising brings dilution, and too much fundraising will become a problem later. Thank you for joining us for the Startup Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today!