Once your product begins performing well in the market, it may be time to consider a seed round of funding. Seed rounds are typically between $2–$5 million with a post-money valuation between $20–$30 million.
Though some seed funding is done on Simple Agreement for Future Equity (SAFEs) and convertible notes, the seed round is often the first round of equity financing. In equity financing, the company is selling preferred stock, which means that seed investors become part-owners of the company. Many seed rounds are based on the Series Seed documents. However, depending on the size, some are based on the National Venture Capital Association documents.