Fund Structure
Seed Fund
A venture fund that specializes in very early-stage investments, typically writing first checks of $500K-$3M.
Seed funds focus exclusively on pre-revenue or early-revenue startups. They typically write smaller checks ($500K-$3M), invest based on team and market rather than metrics, and build portfolios of 20-40+ companies. Seed funds often have smaller fund sizes ($25M-$100M).
In Practice
The $50M seed fund invested in 30 companies over 3 years, writing average checks of $1.5M for 10-15% ownership. Three of those companies went on to raise Series A at 10x+ valuations.
Why It Matters
Seed funds fill a critical gap in the funding ecosystem, backing companies too early for Series A funds but too ambitious for angel investors alone.
VC Beast Take
Seed funds are venture capital's R&D department. They take the biggest risks on the least data. When they're right, the multiples are extraordinary.
Related Concepts
Further Reading
Angel Investing 101: How to Start Investing in Startups
A practical guide to entering the world of startup investing — from accredited investor requirements and minimum check sizes to finding deal flow and understanding the legal basics.
Emerging Manager vs Established Fund: What's Different
First-time fund challenges, LP skepticism, smaller check sizes, the performance data—a clear-eyed comparison of emerging managers and established venture funds.
How to Negotiate a Term Sheet as a First-Time Founder
Your first term sheet is exciting and terrifying. Know what's negotiable, what's standard, and the practical tactics for pushing back on liquidation preferences, board seats, and protective provisions.
How VCs Evaluate Startups: Inside the Due Diligence Process
Market analysis, founder assessment, reference checks, financial modeling, IC memos—a detailed look at how venture capital firms actually decide which startups to fund.
When Should a Startup Raise Venture Capital?
Not every startup should raise VC. The timing, market signals, and traction benchmarks that indicate you're ready — plus the honest case for when bootstrapping is the smarter path.
The Founder's Guide to Dilution: How Much You'll Actually Own
Walk through a realistic Seed to Series B scenario with real numbers. See exactly how option pools, round sizes, and preferences affect what founders actually take home at exit.
Related Guides
The First Fund Playbook: From Zero to Fund I Close
The definitive playbook for raising your first venture fund — building your track record, finding LPs, structuring terms, and closing Fund I.
The Complete Guide to Startup Fundraising
A step-by-step guide to raising capital for your startup — from deciding when to raise, to closing your round and everything between. Written for founders, by people who've seen both sides.
How Venture Capital Works: The Complete Guide
Everything you need to understand about venture capital — how funds raise money, how deals get done, and how returns flow back to investors. The definitive primer.
VentureKit
Ready to launch your fund?