# Seed round

> A seed round is a startup's first significant outside funding, used to find product-market fit and build the early team. Investors are usually seed funds and angels, sometimes with a lead investor who sets the terms. A seed round can be priced equity or SAFEs. Expectations vary by market, but seed investors usually want early signs of demand such as paying customers, pilots or strong usage.

Source: https://delsivo.com/glossary/seed-round · Updated 2026-11-06

## 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](https://delsivo.com/claims-and-evidence), 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](https://delsivo.com/glossary/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.

## Frequently asked questions

### How much do startups raise in a seed round?

It depends on country, sector and the year. Look at recent data for your market; figures from one region or year don't transfer well.

### Is a seed round always priced?

No. Many seed rounds use SAFEs or convertible notes. Larger seed rounds are more often priced, with a lead investor setting terms.

### What comes after a seed round?

Usually a Series A, sometimes after a seed extension. The aim is to show enough growth and retention to justify a larger round.

## Related pages

- [Delsivo for seed funds](https://delsivo.com/for/seed-funds)
- [Pre-seed](https://delsivo.com/glossary/pre-seed)
- [Lead investor](https://delsivo.com/glossary/lead-investor)
- [MRR](https://delsivo.com/glossary/mrr)