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Raising a seed round 101

Lenny's Newsletter · 2m

This guide provides comprehensive advice on raising a seed round for startups, written by experienced investors Terrence Rohan and Jack Altman. It covers key topics such as determining if venture capital is right for your company, how much to raise, and how to maximize chances of a successful round. The article emphasizes the importance of creating FOMO among investors, preparing well-crafted materials, and getting powerful warm introductions. It advises on negotiating terms, focusing primarily on post-money valuation and board composition. The guide incorporates insights from successful founders of companies like Figma, Notion, and Instacart. It stresses the importance of choosing the right investors and vetting them thoroughly. Lastly, it discusses the pros and cons of announcing a successful seed round, emphasizing that the decision should align with the company's biggest challenges.