How to get seed funding for your startup?

Launching a startup is exciting, but turning an idea into a real business takes more than vision. It takes capital. And if you’re starting to think about how you'll get funding for your startup, you’re not alone. Every founder hits this moment. You believe in what you’re building – now it’s time to find others who believe in it too.

This guide will help you get started. We’ll walk through everything step by step. You’ll learn what angel investors actually care about. And you’ll find out how to show up with the story and numbers that make people say, “I’m in.”

Key takeaways: 

• Seed funding is your startup’s first real financial leap, used to build, hire, and validate your business before scaling.
• Before fundraising, assess your readiness. Have a clear pitch, a working MVP, a strong founding team, and a basic revenue model.
• A standout pitch deck is essential. Keep it focused, visual, and compelling. Investors want to see traction, a large market, and a team that can execute.
• Explore all funding paths. Angel investors, VCs, accelerators, crowdfunding, and friends & family each have unique pros and cons.
• Know your funding instruments. SAFEs and convertible notes are common early-stage financing tools – understand how they work before signing any documents.
• Investors invest in people, not just ideas. Be confident, coachable, and clear in your pitch meetings – and always follow up professionally.
• Term sheets and due diligence are where it gets real. Get legal help, read every clause, and stay organized and responsive.

Table of contents

• What is seed funding?
• Are you ready for seed funding?
• Essential preparation for securing seed funding
• Where to find seed funding?
• Understanding common financial instruments for seed funding
• The art of the pitch
• Handling term sheets and due diligence
• What if you get a “no”? (It happens.)
• FAQs
  

What is seed funding?

Seed funding is the first real boost that turns your idea into a business. It’s the capital you raise, often from angel investors or early-stage VCs, to build a product, hire your first key team members, and start proving your concept in the market.

Seed funding usually comes after pre-seed money. That’s the cash you might’ve used from savings or friends and family. This round helps you move from scrappy startup to something more stable and serious. And it bridges the gap to your Series A funding round.

How much seed money you raise depends on your industry and how far you need to go to validate your model. For some startups, it’s $100K; for others, it’s several million. Either way, the mission stays the same. You want enough runway to prove your idea works. And you want to show that real customers want what you’re building.

Are you ready for seed funding?

Before diving into the process of how to get seed funding, take a moment and ask yourself if you’re truly ready. Here’s a quick gut-check before you talk to angel investors or seed funds:

First, can you explain your business in one sentence?

• You should be able to clearly state what problem you solve and for whom it’s intended. If it’s fuzzy or confusing, you need to work on that first.

Second, do you have something to show? 

• Even a simple MVP or clickable demo can be helpful. Investors want to see whether you’ve started building or you’re still just dreaming about it. 

The third thing is, is your market big enough? 

• A great idea in a tiny market won’t excite investors. Show them the big picture that you’re tackling a big, growing, and underserved space.

Do you have the right team? 

• At this stage, you don’t need a full squad yet. However, you should have co-founders or early hires who possess genuine skills and a serious commitment.

Last, do you know how you’ll make money? 

• You don’t need a perfect plan. The only thing that matters is that you just have a clear idea about who your customers are, and you’ll get paid. 

If you’re not yet confident in answering the questions mentioned above, that’s okay. Focus on getting there. When the foundation is strong, raising seed funding won’t feel like a shot in the dark. It’ll feel like the next logical step.

 

Essential preparation for securing seed funding

If you’ve checked the boxes and feel ready, it’s time to gear up. Raising seed funding isn’t about guessing your way through a pitch. You need to put in the prep work. That’s how you stand out and show investors you’re worth betting on.

Build a pitch deck that actually works

Your pitch deck is your startup’s first impression. And it needs to land well. It’s not just a checklist item; it’s how you get in the door. Serious angel investors will judge you by it.

Keep it tight (10–15 slides max), and make sure each one earns its spot: 

• Start with a problem: Start here. What pain point are you solving, and why does it matter?
• Then show the solution: Show how your product uniquely solves that problem. What makes it better than the status quo?
• Market opportunity matters: Investors want scale. Prove there’s a big enough market to make their investment worthwhile.
• Show off the product: Bring the MVP to life. Screens, demos, usage statistics, and any other metrics that demonstrate momentum and product-market fit.
• Talk about your team: Highlight the people building this with you. Why are you the team that can win?
• Then, the business model: Show how you plan to generate revenue. Be clear about pricing and customer acquisition.
• Show traction: Have any users, revenue, or signals of demand? Include them. Even small wins build confidence.
• Include financials: Share realistic projections for the next 3–5 years. Show how the seed money turns into runway and growth.
• End with the ask: Be specific. How much are you raising, how will you use it, and what key milestones will that unlock?

Keep your deck visual and make it clean and easy to follow. Ditch the text walls. And always remember that you’re telling a story here. One that investors want to join. If you want a template, check out frameworks like a 10-slide guide. However, be sure to tailor it to your own vision.

Building a solid business plan

Not every investor will ask for a full business plan. But having one ready shows you’re serious about your business. It helps you think through every part of your startup from product to strategy. And it gives you something solid to share if investors want more detail. 

Your business plan should build on your pitch deck. You can think of it as the expanded version. More depth. More details. Here’s what to include:

• A short and clear executive summary
• In-depth descriptions of your company and product
• Market research with solid data to back it up
• Your team and how you’re organized
• Go-to-market and sales strategies
• A clear ask: how much you need and where it’s going
• Realistic financial projections based on smart assumptions

You don’t need to overcomplicate it. There are tools, such as the SBA, that can help guide you. But keep your plan clear, focused, and founder-friendly.

Understanding your financials

When you’re raising seed capital, you have to understand your financials. Angel investors aren’t expecting you to be a CFO. But they do want to know that you understand your business model, your cash flow, and how far their money will take you.

Here are the key numbers you need to know:

• Burn rate – how fast you’re spending money
• Runway – how many months your cash will last
• Revenue forecasts and your cost structure
• Cash flow assumptions you can clearly walk through

If you stumble on the numbers, it signals risk and makes investors nervous. But when you nail them, it builds serious trust.

Valuing your startup (the tricky part)

Valuing your startup can be challenging, especially in the early stages. Without significant revenue, it’s more art than science. So, startups need to focus on pre-money and post-money valuation, since that sets how much equity you’re giving up.

Keep your valuation grounded in a few key things:

• Similar startups and what they were worth
• The traction you’ve got and the strength of your team
• The size of the market you’re chasing
• Any unique tech, IP, or advantage you can protect

Set your number too high, and you might scare investors off. Set it too low, and you could give away too much. This is a negotiation. So be ready and stay flexible.

Perfecting your elevator pitch

When you’ve got just 60 seconds, your pitch has to pop. This is your first real test. It’s your chance to grab attention and spark interest. Your elevator pitch should quickly answer three things: What do you do? Who’s it for? And why does it matter right now? 

Just keep it sharp, simple, and confident. Then practice it a lot. You want it to feel smooth and natural every time. A great elevator pitch won’t land the full investment. But it will get the right doors to open. And that’s where the real conversations begin.

Where to find seed funding?

You’ve got the pitch, the plan, and the confidence. Now comes the big question: where do you actually find seed funding? There are lots of ways to raise early capital. Each path has pros, cons, and tradeoffs. The key is finding what fits your stage, industry, and goals best.

Bootstrapping and friends & family

Many founders start by bootstrapping. They fund the business themselves through savings or early revenue. It gives you full control and no dilution, but it can limit how fast you grow and increase personal financial pressure.

Friends and family often step in early because they believe in you. That support can be powerful; that’s great. But it needs to be handled professionally. Use clear agreements, outline the risks, and treat their money with the same seriousness you would with any other investor.

Angel investors: Your first true backers

If you’re wondering how to get seed funding, angel investors are often the answer. These are individuals, often former founders, who invest their own money in early-stage companies. They know the risks and are often willing to bet on a great team with a bold idea.

Beyond capital, a good angel investor brings industry insight, connections, and mentorship. You can find them through angel networks, pitch events, warm intros, or even platforms like LinkedIn. The best ones will challenge you, support you, and help shape your path to product-market fit.

Seed venture capital (VC) firms

Some startups need more capital, especially in high-cost sectors like deep tech or biotech. That’s where seed-focused venture capital firms come in.

These firms invest money from a group of backers, not their own. So they’re usually more formal and focused on metrics. But they also bring structure, strong networks, and support beyond the seed round.

The difference between these two is that angel investors write personal checks. VCs write institutional ones. Both can be great partners, just know what each brings to the table and what kind of pressure or expectations might follow. 

No matter which route you take, seed funding is about more than money. It’s about finding the right partners, people who believe in your vision and help you move faster.

Accelerators and incubators

Startup accelerators and incubators can be awesome launchpads. They usually give a small seed check, mentorship, tools, and structure. In return, they take a small slice of equity. It is early help in exchange for early belief.

You probably won’t raise millions here, and that’s OKAY. What you do get is major value in guidance, credibility, and connections. For many founders, that support is even more helpful than the money.

If it’s your first time building a startup, this can be a game-changer. These programs will help you move faster, stay focused, and avoid big mistakes. At the end, you’ll also walk away with a stronger product and a smarter plan.

Crowdfunding platforms

Crowdfunding is another smart way to raise early capital. It works especially well if you’ve built a strong community or have a product people get excited about.

• Equity crowdfunding allows everyday people to invest in your company. It’s regulated, growing fast, and gives you a new path outside traditional funding.
• Reward-based crowdfunding is different. Backers pre-order your product or get fun perks. It helps you test demand and build early momentum.

So, what is the catch? Crowdfunding takes real marketing effort and energy. But if you tell a great story and rally a crowd, it’s one of the few ways to raise money and keep it in control. And grow your community all at once. 

Whether it’s angels, accelerators, or crowdfunding, there’s no one right answer. The best choice is the one that aligns with your goals and values. And make you able to take that next big leap forward.

Understanding common financial instruments for seed funding

When you’re raising seed funding, the deal here isn’t always about selling equity right away. There are many early-stage startups that use flexible tools like convertible notes or SAFEs (Simple Agreements for Future Equity). Because these options help you raise money without setting your company’s value too early.

1: Convertible notes

They are short-term loans that turn into equity later. They usually convert during your next funding round, like Series A. They typically include:

• An interest rate, since they start out as debt
• A valuation cap, which limits the price early investors pay later
• A discount, giving early investors a better deal on future shares

This setup gives you time to grow before setting a firm valuation. And it rewards early backers with stronger terms for believing in you early. 

2: SAFEs

SAFEs are like convertible notes, but even simpler. They’re not debt, so there’s no interest and no maturity date. That’s the reason they are faster, easier, and super common in seed and pre-seed rounds.

Both tools help streamline early fundraising. They align founders and investors without slowing down the process. And if you’re serious about raising seed capital, you need to understand how these work. Investors will expect you to be familiar with the basics. You should be clear on the terms you’re offering and what you’re comfortable with.

At the seed stage, these tools keep things simple. When used effectively, they help you raise money quickly and continue building toward your next big round.

The art of the pitch

Landing a meeting with an angel or VC is a huge step. But now comes the real challenge – nailing the pitch. This is your moment to shine. And pitching isn’t just reading slides. It’s about showing up with confidence and having a clear vision. Investors want to see a smart team solving a real, painful problem.

Be ready before you pitch.

Reinforce your preparation and know your pitch, your numbers, and your story cold. You should be fluent in:

• Your valuation and why it makes sense
• Your funding request and how the money will be used
• Your assumptions about the market and growth

During the pitch

Slides matter, but how you show up and your pitching matter more. Investors are looking for:

• Clarity: Explain your business like you’re talking to a smart friend.
• Passion: Why does this problem matter to you?
• Insight: Show deep understanding of your market and customer.
• Coachability: Be open, responsive, and thoughtful in the face of challenges.

After the pitch

After the meeting, send a follow-up email to thank them for their time and consideration. Always make sure to keep it brief, professional, and include any info you promised to deliver. This is how relationships start. And in the world of seed funding, relationships are everything.

Great pitches make a mark. But strong relationships get funded. So play the long game, show up ready, and stay real. That’s how you raise seed money the right way.

Handling term sheets and due diligence

When an angel or VC is ready to invest, you’ll get a term sheet. It’s a non-binding document that lays out the deal. It includes your valuation, the amount of equity they’ll receive, and investor rights, such as board seats or liquidation preferences. It may also include notes about SAFEs or convertible notes if you’re using them.

Read everything. Then read it again.

A term sheet sets the tone for your investor relationship, so don’t rush it. Take your time. Work with a startup-savvy lawyer who knows early-stage deals inside and out. They’ll help you understand the fine print, spot red flags, and get terms that work for you. Yes, you can negotiate. And yes, you should, especially if something doesn’t feel right.

The due diligence phase

Once the terms are agreed upon, your investor will conduct due diligence. This is their deep dive into your startup’s:

• Your financials and forecasts
• Cap table and legal docs
• Your team credentials
• Product status and market traction
• And customer references (if applicable)

It’s not a pop quiz, it’s a trust-building process. Be organized, honest, and prompt in your responses. Transparency here goes a long way toward building investor confidence and getting your seed funding over the finish line.

Term sheets and due diligence are where things get real. So, handle them with care, and you’ll turn interest into investment, and investment into momentum.

What if you get a “no”? (It happens.)

Rejection is a natural part of the process when raising seed capital. Every founder, no matter how polished their pitch, hears “no” more than they’d like. It happens to everyone. Don’t take it personally. And definitely don’t let it stop your momentum.

When an angel investor or VC passes, thank them and ask for feedback. Most won’t mind sharing why it wasn’t a fit. Maybe your market story needs refining. Maybe your business model wasn’t clear. Or maybe you were just too early for their fund’s stage or focus.

Whatever the reason, treat it as data. Use it to sharpen your pitch deck, refine your assumptions, and fill any funding gaps they spotted. Every “no” is a step closer to a “yes” if you use it right.

The first yes starts here

Securing seed funding for your startup is never easy, but it’s absolutely within reach. With the right prep, a strong foundation, and a focused mindset, you can make it happen. You’ll be ready to find the right investors and close your first round of funding.

From angel investors to venture capital firms, knowing where to look and how to pitch is half the battle. The other half? Showing up with conviction, clarity, and a compelling story.

Focus on building something real. That means a working business model, a capable team, and a solution the market truly needs. When those pieces align along with solid numbers and a strong vision, the funding will follow.

This first round is more than a check. It’s a game-changer. Just nail it, and you’ll have the momentum, product progress, and investor trust to start scaling fast.