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An Insightful Discussion on the Current Landscape of Seed Investing with Jason Lemkin, Sam Lessin, Frank Rotman & Harry Stebbings | SaaStr

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Seed investing has become an increasingly popular avenue for investors looking to get in on the ground floor of promising startups. With the rise of technology and the startup ecosystem, seed investing has become a crucial part of the funding landscape. To gain some insights into the current state of seed investing, we turn to industry experts Jason Lemkin, Sam Lessin, Frank Rotman, and Harry Stebbings.

Jason Lemkin, the founder of SaaStr, a leading community for SaaS founders and investors, believes that seed investing has evolved significantly over the years. He notes that in the past, seed rounds were smaller and often led by angel investors. However, with the emergence of micro-VCs and institutional investors, seed rounds have become larger and more competitive. Lemkin emphasizes the importance of having a strong lead investor who can provide not only capital but also guidance and connections to help startups succeed.

Sam Lessin, a partner at Slow Ventures and former VP of Product Management at Facebook, highlights the changing dynamics of seed investing. He points out that while seed rounds used to be primarily focused on product development and market validation, they now often include elements of growth investing. Startups are expected to demonstrate early traction and a clear path to scalability to attract seed investors. Lessin advises founders to focus on building a strong team and executing their vision to stand out in a crowded market.

Frank Rotman, founding partner at QED Investors, brings a unique perspective to seed investing. QED Investors specializes in fintech startups and has a deep understanding of the challenges and opportunities in this sector. Rotman believes that seed investing is not just about providing capital but also about finding the right fit between investors and founders. He emphasizes the importance of aligning interests and values to ensure a successful partnership. Rotman also advises founders to be realistic about their valuation expectations and focus on building a sustainable business model.

Harry Stebbings, the host of The Twenty Minute VC podcast and a venture capitalist at Stride.VC, shares his insights on the current trends in seed investing. He notes that there has been a shift towards more specialized seed funds that focus on specific industries or geographies. This specialization allows investors to bring domain expertise and provide value beyond just capital. Stebbings also highlights the importance of diversity in seed investing, both in terms of the founders being funded and the investors themselves. He believes that diverse perspectives lead to better decision-making and ultimately better outcomes for startups.

In conclusion, seed investing has evolved significantly in recent years, with larger rounds, increased competition, and a focus on early traction and scalability. Founders need to build strong teams, execute their vision, and find the right fit with investors. Specialization and diversity are also key trends in seed investing. As the startup ecosystem continues to grow, seed investing will remain a critical component of the funding landscape, providing capital and support to fuel innovation and drive economic growth.

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