Seed Extension

A seed extension is additional capital raised at the same (or very similar) valuation and terms as the original seed round. Rather than doing a formal new round (with new valuation and terms negotiations), the company simply extends the existing round — adding new investors or accepting more capital from existing ones. Seed extensions happen when: the company has made progress but not enough for a Series A; the founders want to extend runway without taking a new valuation step; or market conditions make Series A difficult. From a cap table perspective, seed extension investors get the same share class and terms as original seed investors. Repeated seed extensions without milestones can signal to Series A investors that the company is struggling to hit targets.