Recruiter's Glossary

Examples: Ratchet • Information Rights • Burn Rate

Seed Round

Term from Venture Capital industry explained for recruiters

A Seed Round is the first major fundraising stage for new companies, where they raise money from investors to grow their business. It usually happens after friends and family investment but before larger funding rounds. Think of it like planting a seed that will hopefully grow into a successful company. Companies typically use this money to develop their product, hire initial employees, or start marketing. This funding can range from $500,000 to $2 million, though amounts can vary widely. When you see this term on a resume, it usually means the person has experience either raising money for their own startup or helping other companies secure early-stage funding.

Examples in Resumes

Led Seed Round fundraising effort that secured $1.5M in investment

Advised 12 startups through successful Seed Round closings

Managed due diligence process for 5 Seed Round investments

Evaluated over 50 companies for potential Seed Round investment

Structured Seed Round deals worth $10M total across 8 startups

Typical job title: "Venture Capital Analysts"

Also try searching for:

Venture Capital Associate Investment Analyst Startup Investment Manager Early Stage Investor Angel Investor Investment Associate Seed Fund Manager

Where to Find Venture Capital Analysts

Professional Networks

Industry Resources

Events & Conferences

Example Interview Questions

Senior Level Questions

Q: How do you evaluate a startup's potential for seed investment?

Expected Answer: Should discuss analyzing team capabilities, market size, product-market fit, competitive landscape, financial projections, and potential exit strategies. Should mention importance of due diligence process and risk assessment.

Q: What are the key terms you look for in a seed round term sheet?

Expected Answer: Should explain valuation, equity percentage, voting rights, board seats, anti-dilution provisions, and investor protections in simple terms. Should demonstrate understanding of standard market terms versus red flags.

Mid Level Questions

Q: What's your process for conducting due diligence on a seed-stage company?

Expected Answer: Should outline steps for reviewing financial statements, legal documents, market analysis, customer validation, and team background checks. Should mention importance of reference calls and verification procedures.

Q: How do you structure a typical seed round investment?

Expected Answer: Should discuss different investment vehicles (preferred stock, convertible notes, SAFE notes), typical terms, and how to align investor and founder interests.

Junior Level Questions

Q: What's the difference between a seed round and Series A funding?

Expected Answer: Should explain that seed rounds are earlier, typically smaller amounts for initial product development and market testing, while Series A is larger and focuses on scaling proven business models.

Q: What basic financial metrics do you look at when evaluating a seed-stage company?

Expected Answer: Should mention key metrics like burn rate, runway, revenue (if any), market size, and basic growth projections. Should understand these might be limited for very early-stage companies.