How to Raise a Seed Round from Scratch: A Step-by-Step Guide

How to Raise a Seed Round from Scratch: A Step-by-Step Guide

Raising your first seed round can feel like trying to join an exclusive club with no invitation.

No network? No traction? No clue where to start?

You’re not alone.

In this guide, I’ll break down exactly how to raise a seed round from scratch—step by step—no fluff, no vague advice.

Whether you’re a solo founder, still validating your idea, or halfway to PMF, this is how you raise.

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Corporate Venture Capital: 4 Strategic Rationales To Understand — How to Raise a Seed Round from Scratch: A Step-by-Step Guide

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What You’ll Learn

How to package your startup into something investors want
How to find, message, and pitch investors
How to close your first $500K to $2M seed round
Internal links to tactical fundraising playbooks from Capitaly.vc

1. Clarify Your Story Before Anything Else

Before pitch decks or outreach, get your story straight.

Investors back narratives. Make yours clear, urgent, and inevitable.

Use the Founder Narrative Formula:

The Problem: Painful, urgent, and growing
The Insight: What you’ve seen that others missed
The Solution: How your product uniquely solves it
The Why Now: Why this has to happen today
The Vision: What the world looks like when you win

2. Validate the Market First—Even Without a Product

You don’t need code.

You need proof.

50+ user interviews
A landing page with email signups
LOIs or pilot commitments
Pre-orders or payment links
A waitlist growing every week

Traction beats tech.

3. Build a 10-Slide Pitch Deck

Stick to the essentials:

Cover Slide
Problem
Solution
Market Size
Product (with screenshots)
Business Model
Go-to-Market Plan
Traction (or Signals)
Team
The Ask + Use of Funds

Optional: Timeline, Social Proof, Vision slide

Full teardown: Pitch Deck Teardown: Slide-by-Slide Lessons from Uber/Airbnb

4. Set the Right Fundraising Target

Most seed rounds fall between $500K–$2M.

Here’s how to set your number:

Raise just enough to hit your next meaningful milestone (PMF, 10K MRR, etc.)
Build in 18 months of runway
Include hiring, product, and GTM budget

Don’t raise for dreams—raise for progress.

5. Create Your Investor Pipeline

You’re now a B2B sales rep. Your product is your startup. Your customers are investors.

Use a spreadsheet or Capitaly.vc CRM to build:

100–200 investors
Sort by category: Angels, Pre-Seed, Seed Funds, Syndicates
Prioritize by match: Industry, geography, thesis

6. Warm Intros > Cold Outreach (But Cold Can Work)

Warm intros still convert best.

Use LinkedIn + Twitter to map mutual connections
Ask other founders for intros
Attend demo days, pitch nights, online investor AMAs

No warm intro?

Use this cold email formula:

Subject: [Startup name] — tackling [problem] in [market]

Body:
Hey [Name],
I’m [Name], founder of [Startup]. We’re solving [X problem] in [Y market].
We’ve [traction point], and I’d love to send over a short deck.
Mind if I share it?

Keep it tight. Follow up 3x. Track responses.

7. Practice Your Verbal Pitch Relentlessly

Your deck gets you the meeting.
Your mouth closes the deal.

Practice:

7-minute narrative
Crisp answers to 30+ common investor questions
Handling objections: TAM, traction, tech, team

Use founder friends, advisors, or even AI to rehearse.

8. Run a Tight, Time-Boxed Process

Don’t let your raise drag for 6 months.

Instead:

Pick a 4–6 week fundraising window
Group all meetings within 2–3 weeks
Create urgency by signaling momentum

This turns your raise into a momentum loop.

9. Build Momentum With a Strong First Check

The first $100K–$250K is the hardest.

Target:

Angel investors
Operator angels
Alumni groups
Syndicates (e.g., AngelList, Calm Fund, etc.)

Once you have early checks, name-drop in outreach:

“We’ve got $150K committed including [Notable Angel]. Would love to get your take.”

10. Use AI Tools to Save Time and Increase Output

Use tools like:

ChatGPT to draft emails, refine pitch, summarize feedback
Clay / Apollo.io to find investors
Whimsical / Figma to wireframe product mockups
Canva / Pitch to polish your deck
Capitaly CRM to track every interaction

More tools: 15 AI-Powered Fundraising Tools Every Founder Should Know

11. Close Like a Closer

Once you have interest:

Send SAFE or convertible notes via AngelList or LTSE
Use DocSend for deck tracking
Move fast—send docs while interest is warm
Follow up until money hits your account

You’re not done until the wire clears.

12. Don’t Let a Bad Term Sheet Kill You

Red flag clauses to avoid:

Full-ratchet anti-dilution
Participating preferred
Multiple liquidation preferences
Board control handover
Founder re-vesting

Read: Term Sheet Nightmares: Clauses You Should Never Accept

13. Celebrate—but Stay Scrappy

Don’t act like you’ve made it.

You’ve just bought yourself time.

Now prove the bet was worth it.

FAQs: Raising a Seed Round from Scratch

Can I raise seed without traction?
Yes—if you’ve validated the problem, market, and have a strong team and story.

How long should a seed round take?
Ideally 4–8 weeks if run properly.

Is $500K enough to start?
Often yes, especially with a lean team, clear MVP, and tight goals.

Should I use a SAFE or priced round?
For seed: use Y Combinator’s SAFE unless your investors demand priced equity.

What if I’m not in SF/NY?
Location matters less in 2025. But momentum, clarity, and confidence still matter.

Conclusion

Raising a seed round is hard—but it’s a skill you can learn.

It’s not about who you know.
It’s about how well you execute under pressure.

Refine your story.
Prove the market.
Pitch with urgency.
Close with confidence.

Subscribe to Capitaly.vc Substack to raise capital at the speed of AI.

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