What’s the best way to raise your seed round?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Numbers Can Ruin A Good Story – AVC

You can raise a seed (or Series A) on a story. But at some point, you will have numbers; users, user growth, revenues, and revenue growth. You will also have a burn rate. And those numbers will become the thing you are judged on and your nice story will be “ruined” by the numbers. Now this is not always true. You might be one of the few entrepreneurs on a real rocket ship and your numbers will be your friend. If that is true, raise while the numb… (read more)

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
What Seed Financing Is For – AVC

I feel very strongly that seeds should not be as large as they are these days and they should not be used to fund anything other than building product and finding product market fit.

Josh Kopelman (Partner at First Round)
What the Seed Funding Boom Means for Raising a Series A | First Round Review

Why not raise $2.5M in seed money instead of $1.5M to give yourself the best shot at perfecting this data? You should target 18 to 24 months of runway post Series Seed. The best time to raise follow-on capital is when you don’t need it, and 2 years of runway gives you the best chance to land in that situation.

Mark Suster (Managing Partner at Upfront Ventures)
Revisiting Paul Graham’s “High Resolution” Financing | Bothsides of the Table

I often counsel the following: set a minimum amount of the round “X” (for example $500k) and put a clause in the term sheet that allows you to do a second closing of up to “X” + 50% ($250k in this example) in up to 90 days post closing at the same price. This gives you the ability to get the first money in the bank while giving you flexibility in size of round.

Paul Graham (Co-Founder & Partner at Y Combinator)
High Resolution Fundraising

The reason startups have been using more convertible notes in angel rounds is that they make deals close faster. By making it easier for startups to give different prices to different investors, they help them break the sort of deadlock that happens when investors all wait to see who else is going to invest.