Seed Funding: A Complete Guide for Startups | Carta

Fundraising for a startup is never easy, but fundraising when your company is in its early stages can feel nearly impossible without the right resources. In this article, we’ll walk you through all the steps you need to prepare for your seed round funding. Seed funding is some of the first—if not the first—money your company will raise to get to the next stage of growth. There are several different stages (“rounds”) of startup fundraising and each round has a different purpose and process. Seed rounds can be either priced or convertible (sometimes called “unpriced”). A priced round is when you sell preferred stock in your company at a set price per share in exchange for capital to grow your company. A convertible round is when you sell convertible securities—such as SAFEs or notes—for capital amounts that will later convert into stock. Typically, seed funding rounds are relatively small compared to later priced rounds and can vary greatly from about $500k to $5 million. The median fund

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