Fundraising
Series Seed
A standardized set of legal documents for priced seed rounds, simpler and cheaper than traditional Series A documents.
Series Seed is a set of open-source, streamlined legal documents designed specifically for priced seed rounds. Created as a middle ground between SAFEs (too simple for some investors) and full Series A docs (too expensive for seed), Series Seed documents include a stock purchase agreement, certificate of incorporation, and investor rights agreement in simplified form. Legal costs are typically $10-20K vs. $50-100K for full Series A docs.
In Practice
A startup raises a $1.5M priced seed using Series Seed documents: Series Seed Preferred Stock at $3/share with 1x non-participating preference, standard protective provisions, and minimal governance rights.
Why It Matters
Series Seed documents provide the governance structure that some seed investors prefer while keeping legal costs manageable for capital-constrained startups.
Related Concepts
Further Reading
Startup Compensation: How to Evaluate an Offer Beyond Salary
A startup offer is more than salary and options. Here's a framework for evaluating total compensation, valuing equity realistically, and comparing startup offers to big tech packages.
Understanding Liquidation Preferences: What Employees Need to Know
Liquidation preferences determine who gets paid first when a startup exits. In some scenarios, investors take everything and employees get nothing — even in a 'successful' acquisition. Here's how it works.
Follow-On Strategy for Angel Investors: When to Double Down
How to think about follow-on investments in your angel portfolio — pro-rata rights, signaling risks, reserve allocation, metrics to evaluate, and when it's smarter to walk away.
The Tax Benefits of Angel Investing: QSBS Explained
How Section 1202 QSBS can exclude up to $10 million in capital gains from angel investments — the requirements, holding periods, and how this tax benefit dramatically changes the return math.
What Angel Investors Look for Before Writing a Check
The real decision framework experienced angels use — founder conviction, market size, unfair advantage, capital efficiency, and path to next round. Plus the most common reasons angels pass.
409A Valuations Explained: Why They Matter for Your Stock Options
The 409A valuation sets the price you pay for your stock options. Here's how it works, why early employees get a better deal, and what happens to your strike price as the company grows.
Related Guides
Understanding Startup Equity and Dilution: A Complete Guide
How equity actually works, what dilution really means, and what founders take home in different exit scenarios. Real math, worked examples, no hand-waving.
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
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