Key takeaways
- Seed money is meant to prove the business works, not just the product.
- A lead investor often sets terms that others follow.
- Traction claims at seed need clear definitions: paid, pilot or free.
What a seed round investor checks
- Demand: who pays, how much, and whether they stay.
- The metric definitions behind the traction slide.
- Whether the team can sell as well as build.
- What the round funds and which milestones it should reach before Series A.
An example seed round
A fictional B2B startup with $25,000 in monthly recurring revenue raises $2.5 million. A seed fund leads with $1.5 million on a priced round and takes a board seat; two other funds and several angels fill the rest on the same terms. Diligence focused on the billing export, customer calls and the cap table.
How seed deals move through a fund
Seed decks carry more numbers than pre-seed decks, and more chances for definitions to drift. Delsivo's claim tracker, planned for the Pilot release, records each claim with its metric definition, period and source, and keeps the earlier statement when a figure changes, so the memo can show both.
Common confusions
- Seed versus pre-seed: seed usually means more evidence and a bigger round, but the boundary differs by market.
- A seed extension adds money to a closed seed round, often on similar terms, before a Series A.
- Round size does not define the stage. Investors look at the evidence.