In raising funding, many founders believe they can’t raise funding without a lead investor.

At the seed level, this is not necessarily the case.

Founders should launch their fundraising campaign with a convertible note so it’s easy for the investor to join the round.

Since valuation is not set, there’s no need for a lead investor to start it.

There is a valuation cap, but this means the valuation will be set later.

At the seed level, it can be hard to agree upon valuation, so it’s best to set it when there’s more information available.

Founders can fund their early rounds without a lead investor.

At the seed level, founders can find enough funding to close the round.

This is called a party round.

Many but not all investors will provide support to the startup.

In launching a Series A raise, one should start with a convertible note to pick up funding from investors while in pursuit of a lead investor.

Consider a party round for your seed fundraising. 

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.