What is a seed stage investor?

A seed stage investor is an individual or firm that provides early-stage capital and guidance to entrepreneurs and startups.Seed stage investors are different from a general venture capitalist (VC) as they generally have more risk tolerance than VCs. This means that they are willing to invest in businesses with less certainty about future returns. They understand that many startups fail – but those that do succeed can be hugely rewarding investments.

What are some common mistakes made when pitching to a seed stage investor?

Pitching to a seed stage investor can be challenging, and there are some common mistakes entrepreneurs make when they do.Don’t underestimate the importance of getting the basics right – Make sure you know your numbers - present clear financials and projections that make sense. Also think about all aspects of your business plan – what is the unique selling point (USP) for your product or service? What problem are you trying to solve? Be prepared to answer these questions in detail. Don't rush into it – Take time to do research on potential investors before submitting a pitch deck or meeting with them. You should understand their investment strategy and history before presenting any ideas so that you can tailor your pitch appropriately. Don’t underestimate the power of storytelling – Most investors want to hear a story of how your product or service will change people’s lives and how you plan to execute on that vision. Tell them a compelling story but also be ready to back it up with facts and figures.

What should I include in my pitch deck when pitching to a seed stage investor?

When pitching to a seed stage investor, your pitch deck should include a clear and concise overview of your business plan. This should include the problem you are trying to solve, the proposed solution, and how it will make money over time. You should also provide details about your team – who they are and why you believe they can execute on the vision. You should also outline any competitive advantages that set your product or service apart from existing solutions in the market. Finally, provide key startup metrics such as customer acquisition costs (CAC), lifetime value (LTV), burn rate (monthly expenses) and other important figures that illustrate the potential of your business model.

What are the key things seed stage investors look for in a startup?

When evaluating a startup, seed stage investors look for several key things. First, they want to see that your product or service has potential in the market – is it addressing a genuine customer need? They will also evaluate your team’s ability to execute on the vision – do you have the right skills and experience to make it happen? Finally, they will assess how well you understand the business model and whether it can generate returns over time.Seed stage investors want to take calculated risks when investing in startups. As such, they will be looking for evidence of traction (e.g., customer growth, revenue generation) that demonstrates potential success. If you can demonstrate this along with a sound business plan and passionate team, you have a better chance of securing seed stage investment.

How big is usually seed investment tickets at investment?

The size of seed investments can vary considerably, depending on the investor and the business. Generally, a seed round will be smaller than a venture capital (VC) round, but larger than an angel investment. A typical seed investment could range from $250K to $2 million. However, some investors may offer more or less depending on their risk appetite and view of the opportunity. It’s important to do your research before approaching potential investors so that you have an understanding of what amount is suitable for your particular startup.

Top Seed Investors & VC Firms in 2025: 500+ Investors

The Current State of Seed Investment in 2025

Seed-stage investment continues to be a critical gateway for startups, showing more resilience than late-stage venture capital despite a broader market reset. In 2024, U.S. seed-stage startups raised approximately $13.2 billion, down from the $19B peak in 2022, yet still well above pre-2020 levels.

Unlike Series A and beyond—where funding cycles have grown significantly longer—seed funding has remained relatively active. Investors view this funding stage as an opportunity to enter high-potential companies at more reasonable valuations, especially compared to frothy periods of the past.

However, expectations have changed. Investors now demand more than just an idea or MVP.

Most now look for:

A functional product
Signs of product-market fit
Early traction — users, pilots, or revenue signals

Deal Timelines Are Slower, and Valuations Have Reset

Raising a seed round today takes longer than in 2021–22. Carta data shows that priced seed deals dropped to multi-year lows in late 2023, reflecting a more cautious environment.

Valuations have also come down. After peaking above $10M pre-money in 2021, the median seed valuation dropped to $6–8M in 2023, with a mild rebound in 2024. This shift brings more rational pricing back to the market, but it also means founders must show more and raise less.

For today’s founders, the message is clear: expect longer timelines and greater scrutiny, even in the earliest stages.

The Most Active Seed Investors Right Now

Despite the tougher environment, many seed-focused investors are still active. Firms like First Round Capital, Initialized Capital, and SV Angel continue to lead early rounds. Y Combinator, Techstars, and 500 Global remain important accelerators, offering capital and hands-on mentorship.

Alongside them, accelerators like Y Combinator, Techstars, and 500 Global continue to play a major role in early-stage funding and founder development.

Large venture capital firms — such as Sequoia, Andreessen Horowitz (a16z), and Accel — still participate in seed deals through scout programs and early-stage teams. And corporate VCs from companies like Google, Salesforce, and Amazon are also investing in seed-stage SaaS, AI, and fintech startups to align with future strategic goals.

What Investors Expect From Founders Today

Sustainability has replaced speed as the dominant metric. To attract capital in 2025, seed-stage founders must show:

Early traction, whether through users, revenue, or pilot programs
A clearly articulated go-to-market strategy
Strong unit economics or signs of future monetization
The ability to operate lean while hitting milestones

Simply put, seed investors want to see real progress and future potential — not just a big vision.

Data Still Matters, but Storytelling Wins

While traction metrics are increasingly important, founders who combine strong data with a compelling story stand out. Investors want to back teams who not only understand their product, but also their market timing, customer psychology, and long-term positioning.

Even in this rationalized market, capital is available. But those who stand out in both numbers and narrative are the ones who close rounds.

The Outlook for Seed Investment in 2025

Seed funding may no longer be a gold rush, but it remains one of the most active and strategic stages of the venture cycle. With more institutional rigor, adjusted valuations, and longer timelines, startups that come prepared — with focus, traction, and financial discipline — will be in a strong position to secure backing from the world’s top seed investors.