Seed Funding: Friends And Family

by Zach Robins


The seed stage, or initial funding round for a startup business, is critical to getting a company off of the ground. Often raised from founders, friends or family, this round lays the foundation which allows an idea to blossom into a product or service.Yet, founders often struggle with structuring the seed round. Questions naturally arise, such as:

* What is the valuation (worth) of my company?
* Should the investment be structured as equity or debt?
* How much of the company should I sell to investors?