Key considerations when raising a Seed round in the current market

Reaching out to VCs to raise a Seed round can feel like a daunting prospect – particularly if it is your first time trying to raise funds from institutional investors. Knowing who to approach, and how to persuade them, requires a mix of charismatic storytelling and structured planning.

Jamie Whitcroft, our Head of Early-Stage Ecosystem Coverage & Strategic Partnerships, recently had a discussion with Leila Zegna, Founding Partner at Kindred Capital and Tom Wilson, Partner at Seedcamp, to understand what it takes to raise a realistic round in the current climate.

Key takeaways

Raising a round starts with running a tight fundraising process. It is critical to spend time identifying your ideal investors, focusing on warm introductions and setting a realistic fundraising target.

Ready to pitch? Focus on storytelling. Remember, you’re trying to convince potential investors that you and your team have identified a way to solve a real problem – and that you turn that idea into a unicorn.

Once you receive a term sheet, ensure that you understand each term and its implications. At the Seed stage, term sheets shouldn’t contain complicated liquidation preferences or ‘off market’ terms – you can find out what the market standard is in our latest Venture Capital Term Sheet Guide. Still unsure of something? Don’t be afraid to ask your legal advisor or the investors for clarity on deal terms.