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đŸŒ± How to *Actually* Raise a Seed Round in 2024

Author

Joel Hansen
September 20, 2024

Happy Friday,

Welcome back to Napkin Notes: the only newsletter that’s able to turn an insanely helpful tweet into a fully-fledged break-down article to your email inbox within 24 hours.

Today, we’re digging into how to raise a seed round in 2024. Why?

  • b/c it’s on most of your bucket lists

  • a person on Twitter just went ham on spilling all the hacks

  • and the 4 startups pitching Sept 26th could use the extra “umph” to rock the stage next week

Time to toss your feet up, pour the peppermint tea and dive in.

Also, one little side idea to run your way before we hit the menu.

 đŸ„ How to actually raise a seed round in 2024

24 hours ago, Lenny posted a tweet on X that went viral in the founder world. At the time of writing this, it has over 1,000 bookmarks and 300,000 views. And it’s getting traction b/c it’s insanely helpful.

In the post, Lenny takes the advice of industry titans and breaks down their advice on:

  • how much money founders should raise

  • what founders need to prove investors before they raise

  • and how to maximize the odds of raising a perfect seed round

We boiled the long essay down into 10 points, but if you wanna read the full version, you can find it here.

In Lenny’s words
.

  • Plan Your Raise: Dedicate 2-3 weeks to strategize your fundraising, connecting with multiple investors to create urgency and interest.

  • Research Investors: Compile a target list and investigate each investor’s background, check sizes, and investment history before your pitch.

  • Prepare Materials: Create a polished deck or memo highlighting the problem, market, and your unique solution, tailored for each investor.

  • Get Warm Introductions: Leverage strong connections for introductions to investors, prioritizing influential referrals to enhance credibility and interest.

  • Practice Your Pitch: Present as your best self. Prepare and rehearse your pitch, focusing on clear, confident communication and handling questions.

  • Start Small for Proof: Open a SAFE with smaller angels to build capital and social proof before approaching larger investors.

  • Follow Up Sparingly: Don’t chase investors; follow up occasionally with positive updates to maintain interest without appearing needy.

  • Maintain Mystery: Keep discussions vague regarding other potential investors to maintain allure and intrigue around your fundraising efforts.

  • Know Your Term Sheet: A verbal commitment isn’t binding; ensure you have a signed term sheet or SAFE to secure funds.

  • Close the Round: Funds aren’t secured until wired. Set clear closing dates and keep all parties focused on those timelines.

Some helpful links to save:

Wanna read Lenny’s full article? Click below

🍿 Meet the 4 Startups Pitching Next Week

Meet our startups on stage:

  • Kub Technology: Unified SDK Integration powered by AI.

  • Overplay: Make videos into games instantly -- no code necessary

  • AvatarOS: The best avatar generation technology in the world

  • GameTree: The Best LFG Game App

And the VCs on stage:

  • Dan Bunting who’s the Former Co-Head of Treyarch Studios & Call of Duty Game Director

  • Jason Bailey from East Side Games Group (TSX)

  • Stephen O’Brien from Mantis VC

  • And our host will be announced shortly


Sound like your thing?

📰 Special Message from Bubble

Ever wanted a good reason to visit NYC in the fall? This is your chance.

Our friends at Bubble are bringing together thousands of developers and founders at BubbleCon Oct 1–2 in NYC. Join in person or virtually to learn more about how to build and launch applications without writing code.

Learn more about by registering to BubbleCon here.

👀 Swipe of The Week

Have an amazing weekend.

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