Anarghya Vardhana / November, 2017
What is best practice when pitching for a seed round?
Anarghya Vardhana, Senior Associate at Maveron explains how to pitch when raising a seed round.
We invest in the series A and the seed, we do a lot of seed investing. It is a really great way for us to get to know founders and teams early. The definition of what is a seed has changed a lot. I’ve been at Maveron for about a year and a half and in the venture world for little over two years. Even in that span of time I’ve seen everything from 4 million dollar seeds to 1 million dollar seeds to even smaller seeds, so the definition is constantly changing.
Most important at that seed we are looking for the right team and the right founders. We’re really founder and team driven there. But also, what are they building, what is the idea? Acknowledging that that may and quite likely is that it will change. A couple of things we’re looking at in the seed stage is the idea, what the initial consumer base looks like, the ability for this to really grow into a big business. Acknowledging that at the seed stage maybe they don’t have a lot of traction or they may not have a ton of users, they may not have any revenue or even a path to revenue in the next year or so, but knowing that that is something that can happen down the line is really important. All of that really ties back into the team, their product will probably change, their consumer base may change. Especially as consumer investors, we acknowledge that consumers are fickle, one day they love something the next day they hate it. When you invest in the right team, you know that they can navigate all those troublesome things. Even in the seed that’s what we’re looking for. to be some pretty bad times. Ensuring that you’re investing in entrepreneurs who are able to push through that and persevere because they are so passionate about what they are building is quite critical.