Secure Seed Funding
niklas kaikonenBy the time you’re seeking seed funding, your startup should already have built an MVP and proven that there is real demand for your product. Once you have sales traction, the likelihood of attracting outside investment increases significantly.
Business angels — private investors — are often key players at this stage. In addition to capital, they bring valuable expertise and networks that can propel your startup to a whole new level. Seed funding is typically used to further develop your product and kick-start operations.
What Is the Goal of Seed Funding?
Seed funding is intended to strengthen your startup in three core areas:
- Product Development: Launch a fully functional version of your product or service to the market.
- Market Testing: Validate your business model and gather feedback from early customers.
- Team Building: Recruit key hires whose skills will accelerate growth.
Why Business Angels Are Key
Business angels are private individuals who invest their personal funds in early-stage companies. In exchange, they usually take an equity stake — often between 10% and 40%.
Their contribution goes far beyond money:
- Capital: Angels typically invest €10,000–€50,000, often as part of a syndicated round with multiple investors.
- Expertise: Many bring experience in areas like international expansion, strategic planning, and scaling businesses.
- Networks: They open doors to potential customers, partners, and future investors.
What Attracts Business Angels?
Investors are especially drawn to startups with:
- Scalable Business Models: The ability to grow rapidly without costs rising at the same rate.
- Strong Teams: Motivated, diverse, and adaptable founders and staff.
- Clear Vision: A compelling pitch about the market opportunity and your competitive advantage.
🚦 Task:
Raise seed funding.