Startup Lesson: How To Raise $1M in seed funding

Startups, how do you raise $1M in seed funding?

So, you have a good idea.

No, you have a great idea, right?

You’ve built your product, received positive feedback from customers, gained a little traction in the market, and you need to raise money to scale your startup operation.

What is it going to take to get the seed capital you need?

Entrepreneur fundraising 506w x 380h

Time? How much time?

Emails? Phone calls? Meetings? Presentations?

Connections. How many intros?

Traction. How much?

Reputation. How do you get that?

Here’s a short lesson.¬†Anatomy of a seed round:




Anatomy of Seed from brendanbaker
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2 Responses to “Startup Lesson: How To Raise $1M in seed funding”
  1. The funding graphic is very effective in showing the funding system. In the upper left corner it shows that “bootstrapping” from one’s own resources, family, and friends is step number one.

    Unfortunately, African American household wealth averages about $5,000 compared with almost $111,000 for European Americans (based on 2010 U.S. Census data).

    So, to make the illustration more consistent with reality requires that the first step from bootstrapping to angel investors be at a much higher level to reflect the actual challenges in providing the early stage capital.

    At Community Business Strategies we believe that while financing is an issue, it’s not THE issue. We’re working on solutions that both increase the pipeline of innovative business entrepreneurs, as well as promote collaboration for innovation so that we have more businesses that qualify for external financing.

    (Community Business Strategies, Inc. ( promotes local and state-wide collaboration, innovation, capacity building, and business culture for community-based business development. He can be reached at

    • I agree. The hardest issue for the F&F round (Family and Friends) for African American communities is that the disposable/investable income is typically many times less than counterparts of other ethnicity. This makes raising the initial seed capital unfeasible for a lot of african-american startups. However, this is based on my anecdotal experience.

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