Seed funding, while often is gathered from family and friends, can also be raised from investors who buy into your idea and your plan. These insights from two VCs offer a guide to how to go about getting investors to "bite" early on.
1 Consider timing and amount: Seeing signs of your idea's relevance and need but knowing money would accelerate and sharpen the business model is when you begin to consider the plan to raise seed funding.How much do you ask for? The goal should be to raise enough to hit the next defined milestone with a bit of a buffer.
2. Have a clear and concise "story." Being able to tell who you and your team are and describe your idea is more important than showing metrics.
3. Educate yourself. Know all you can about the concept of vesting, cliff and liquidation preferences or you might get into a bad deal.
4. Think about being fast. Don't get distracted. You have a lot of rounds after the seed round so get it done efficiently.
5. Find investors who "fit" your team and culture. Get a sense of who is right for you and who has experience in the space you're in. You don't want investors just for their money.