As an early stage startup, obtaining seed capital financing is crucial for getting your business off the ground. Seed capital generally comes from angel investors, venture capital firms, crowdfunding platforms and incubators/accelerators. There are many reputable seed stage investment firms that provide not just capital but also mentorship and connections to help startups thrive. In this article, we will look at some of the top seed capital investment companies supporting early stage startups.
Top tier venture capital firms actively investing in seed stage
Many of the most prestigious VC firms have seed investing programs to get exposure to the most promising startups at the earliest stages. Firms like Sequoia Capital, Accel, Lightspeed Venture Partners, and Y Combinator have invested in many of today’s tech giants at the seed stage and leveraged their expertise to help the startups grow. Other leading seed investors include First Round Capital, SV Angel, 500 Startups, and Plug and Play Tech Center. The credibility and experience these firms provide can be invaluable for seed stage entrepreneurs.
Incubators and accelerators providing seed capital and support
Incubators and accelerators are organizations that provide seed funding, mentoring and other services to very early stage startups. Top programs like Y Combinator, Techstars and 500 Startups run cohorts where they invest $100k-$150k in return for equity and then intensively mentor the founders. University affiliated incubators like SkyDeck at UC Berkeley also provide capital and support targeted to that school’s strengths. Going through one of these programs can help give startups the initial push they need.
Angel investor networks for raising seed capital
Angel investors are high net worth individuals who invest their own money in early stage startups. Many angels band together in structured networks and funds to pool capital and share deals. Prominent seed stage angel networks include AngelList, FundersClub, and MicroVentures. Angels can provide seed funding from hundreds of thousands to over $1 million, as well as leveraging their personal expertise and connections. Angellist’s platform also facilitates finding angel investors.
Crowdfunding platforms for raising seed money publicly
Equity crowdfunding portals allow startups to raise small investments publicly from a large pool of investors. Platforms like SeedInvest, WeFunder, and Republic enable raising up to $5 million from unaccredited retail investors. Other sites like CircleUp focus on consumer & retail startups. While crowdfunding has more administrative requirements, it can help startups raise capital more quickly from a wider base.
For early stage startups, partnering with an experienced seed capital provider can be make-or-break. Choosing the right investor fit will provide the capital, expertise and connections necessary to give your startup the best chances of success.