Nowadays is very common to hear that the startup X closed a Series C round of 50 million with a valuation of 670 million, that the startup W closed a seed round of 1.5 million, etc. But the truth is that when startups are looking for some capital they have to live their own experience.
Preparing a seed round is not just defining the amount of money you want to get, is way more. You need to think, define and plan why, what, how, when you want that money.
The first question you should do is WHY you want the money? You have to consider that raising money can be great, but including investors in your company can be difficult. They will start participating in decisions that currently your team is fully in charge.
The second question would be WHAT are you going to do with the money? Recently I heard about a startup that closed a series B and was excited about it, but they started spending money on trips for employees, snacks, chefs, etc.
Then you need to understand WHEN you are going to start and be prepare that it can take a while.
Finally, you have to know HOW you will reach to angel investors, VC, etc. This is an art, each VC will have they preferences but obviously having a warm intro is the best option.
Sometimes entrepreneurs only think of getting more money for the shorter stocks percentage possible. However, this shows that they are not that clever. I can strongly confirm that is always better less money but a great network access, advice and involvement.
