As the economy changes, trends in seed venture capital change as well. To make the best decisions when you seek seed money for venture capital, you need to be connected to sources that offer up-to-date information on initial/seed venture capital news and trends.

Reputable publications with a focus on seed venture capital and seed capital funding opportunities, coupled with the benefits of the information exchange at conferences and seminars, can keep you current on trends in seed money for venture capital. To stay connected in the ever-changing venture capital industry, you should:

1. Subscribe to vc-focused publications and RSS feeds for the most up-to-date information on seed venture capital trends and seed capital for startups.

2. Attend annual seminars and conferences that focus on initial/seed venture capital to network with other seed capital companies.

3. Apply for membership in venture capital associations to stay current on seed capital news and to associate with seed capital investors.

Action Steps
The best contacts and resources to help you get it done

Subscribe to vc publications for seed capital trends

Venture capital magazines and literature offer the latest trends in the seed venture capital segment. Subscribe to an assortment of publications for a well-rounded perspective on initial venture capital news and trends.

I recommend: Subscribe to the Venture Capital Journal, well-respected in the vc industry, for current information on seed venture capital trends. List your business in Funding Post Venture Guide Magazine or subscribe to the publication for the latest in vc news and trends. Venture Guide Magazine appeals to both professionals in the venture capital industry and to entrepreneurs who seek seed capital. American Venture Magazine offers readers a plethora of articles pertinent to all stages of venture capital.

Attend conferences and seminars for seed capital news and trends

Take advantage of conferences and seminars with a focus on seed venture capital for the latest trends. Keep current on the latest seed venture capital news and network with others in the vc industry to exchange information on initial/seed venture capital.

I recommend: Attend Early Stage East, a conference that focuses on initial/early stage venture capital. At the Early Stage Venture Capital Conference, you can network with professionals in seed capital firms and stay up-to-date on changes in initial/seed venture capital.

Join vc associations to keep current on changes in initial venture capital

Take advantage of the benefits of membership in a vc-oriented association. From access to publication archives to members-only meetings and seminars, membership has its privileges.

I recommend: Apply for membership in the National Venture Capital Association. Members have access to present and past publications, are invited to members-only events and have access to special interest groups. Join the National Association of Seed and Venture Funds to network with others in the vc profession and to stay current on trends in seed capital.

As an entrepreneur you need initial venture capital to finance your company or business endeavor. You can acquire initial/seed venture capital for a new company that is not yet established in its operations, to introduce a new product to the market or to finance the research and design phase of your operation. However, most seed capital investors and seed capital firms expect to own a significant share of the companies in exchange for providing seed capital.

At times the demand for rapid growth can require initial venture capital from outside sources. Bank loans are sometimes not an option and trading stocks is only feasible for larger corporations. Private sources of seed money for venture capital can be an attractive option. In fact, private equity plays an integral role in the seed venture capital structure of many high-growth firms. Many new businesses find that raising initial/seed venture capital can be exhausting. However, here are a few tips to make the search for seed venture capital easier:

1. First develop a practicable business plan that appeals to seed capital firms.

2. Research universities and colleges that provide venture capital for startups.

3. Pitch your business plan to seed capital investors in your community.

Action Steps
The best contacts and resources to help you get it done

Appeal to seed capital companies to boost your chances of receiving investment funding

Traditional seed capital investors look for several factors in their potential clients: companies with a well defined brand in their technology, products that can be applied to solving major problems, a strong customer constituency with buying power, capable management and a practicable approach to liquidating unnecessary assets. A seed capital company may reject hundreds of proposals before selecting promising candidates.

I recommend: Check out Garage Technology Ventures, a seed capital firm that gives between $500,000 to $3 million in seed venture capital to entrepreneurs with big ideas in software and material sciences. Santa Barbara Technology Group provides management assistance, strategic guidance and valuable connections for entrepreneurs seeking initial venture capital.

Consult non-profit organizations specializing in seed venture capital

Finding seed capital firms that want to invest in your idea can take a considerable amount of time and research. By contacting networking groups that focus on seed money for venture capital, you can narrow down your potential list of seed capitol investors. Rather than approaching a privatized lender, you may have more success in applying to a foundation geared towards helping your company thrive.

I recommend: Becoming a member of the National Association of Seed and Venture Funds will give you access to seed venture capital firms and early-stage investment professionals across the country. The Social Venture Capital Foundation is a public foundation devoted to empowering individual and small business enterprises.

Develop a business targeting untapped global markets to get venture capital for startup businesses

There are more companies and investors willing to put up initial/seed venture capital for companies that are going into regions like the Far East and Europe. Much of the appeal a private lender sees in providing seed money for venture capital comes from the possibility of gaining a foothold in emerging markets. If you can show that you're ahead of the curve in this regard, you boost your chances of attracting a seed venture capital firm.

I recommend: VC Firm is a seed capital company that has the ability to invest seed venture capital in considerable amounts in high potential e-business startup projects focused on Asia. Global Seed Capital works with promising young companies that may potentially benefit from globalizing influences in information based venues.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Marketing is the operative word here. Rather than approaching a seed venture capital firm with heartfelt confidence in your company, make it a point to conduct yourself with professionalism and competence.

Looking for seed money for venture capital? Afraid of loan rejection from your local bank? Seed capital firms abound, but prepare yourself for a potentially wild ride, as you may get considerably more than you bargained for, as seed capital investors have their own best interests at heart.

While a bank or SBA loan generates a flurry of red tape at the beginning of the credit process, these institutions typically don’t care what happens to you or your company as long as they receive regular payments. Seed capital companies don’t have government guarantees backing up their loan; if you fail, so do they. So expect initial/seed venture capital to arrive with considerable strings attached, typically throughout the major stages of your business.

1. Seed capital for startups through the incubation stage

2. Larger capital infusions and executive management through early to mid stages of growth

3. Final exit when you get conventional funding and the VCs leave

Action Steps
The best contacts and resources to help you get it done

Get off the ground on angel's wings with seed capital

Experts consider your venture 'seed' stage if you have a promising idea or opportunity, but no defined business structure, partners or complete management team, much less measurable revenue. Seed venture capital is typically in the mid-five to low-six figure range, too small for major venture firms to bite. Look beyond friends and family to Angel Investors-individual venture capital investors that front the seed money needed to start a business. As they act alone, there is no overhead, no backing consortium of investors, and so they can focus more on helping you succeed than on recouping their investment. Don't be fooled by the name-they're not soft-edged cherubs you can push over; get ready to be thoroughly grilled by these investors should you choose to use their capital.

I recommend: Peruse this site of San Francisco investors banded together as The Angels’ Forum. ARCH Venture Partners specialize in coming along side and co-founding the startup from initial concept.

Master the ABCs of initial venture capital through funding rounds

You've demonstrated your concept works, you have management in place, and the revenue stream is at least trickling in. At this stage, a seed venture capital firm will put up more than money, although raising a couple of million dollars through 'alphabet rounds' (dubbed Series A, Series B, and so on) is significant. Venture capitalists also will play an active role in management, perhaps even a position on the board or executive level. This protects their investments and provides you with industry expertise to navigate your firm through a fragile phase in its overall development.

I recommend: A seed capital company will either invest by industry such as Asset Management Company, which has invested seed capital in telecommunications and life sciences startups since 1965, or by geography such as Blue Rock, with offices in Delaware and New Jersey, concentrating on companies in the Mid-Atlantic region from New England to the Carolinas.

Exit from seed capital funding with the right strategy

Just like conventional loans, venture capital for startup businesses has an end date. A seed capital firm will invest in your company only if convinced they'll see their money returned at the end of a set term. The exit scenario can look something like offering your company stock to the general market in an IPO, or perhaps they will look for a merger or acquisition-perhaps even with another company in their investment portfolio.

I recommend: Check out G-51’s entrepreneurial venture capital business model that matches seed ventures with existing companies in its portfolio to ensure success. Murphree Venture Partners works with mid-stage companies across the Sun Belt.

Initial or "seed" venture capital, also referred to as "early stage" venture capital, is essential for start-up businesses that need funding to propagate early business growth. Seed vc can support staffing needs, project management or marketing research.

To attract venture capital investors that offer seed vc, a business needs a solid business plan. Venture capital consultants can help small business owners with business plan formulation and can pinpoint the best vc opportunities to meet specific needs. As you research venture capital possibilities, know these initial/seed venture capital terms to ensure you have a strong grasp on the vc industry.

Action Steps
The best contacts and resources to help you get it done

Seed venture capital investors

Seed venture capital investors provide funding for start-up businesses that have a high potential to turn a profit. Along with initial capital funds, seed venture capital investors also provide management assistance and resources to spur success within a budding company.

I recommend: Read about the Santa Barbara Technology Group for information on seed venture capital investors.

Venture capital consultants

Venture capital consultants are professionals that can help a business find and secure potential industry-specific venture capital. VC consultants can help formulate a business plan that is appropriate for seed/initial venture capital funds.

I recommend: Learn about the role venture capital consultants have within the vc industry at allvcc.com.

Business plan

A business plan is an organized and concise plan that provides potential venture capital investors with pertinent information about the company and plans for the requested vc funds. Business plans can also forecast the return a vc investor can expect from funds invested in the company.

I recommend: Business Plan Master offers extensive information on business plans for venture capital.

Risk capital

Risk capital, a term associated with seed vc, is capital allotted to a new company that has great earning potential, but still has risks associated with it.

I recommend: For extensive information on risk capital, visit businessfinance.com.

Drive-by deal

A drive-by deal refers to venture capital that is invested in a business, only to be removed a short time later. Venture capital investors use this technique to avoid loss and to facilitate a quick exit from financial ties to the company.

I recommend: Investopedia.com provides more information on drive-by deals.

Benchmarks

Benchmarks are goals a vc-funded company should meet and are set by the venture capital investors that supply the funds. Benchmarks that are met can help a company secure further venture capital funding.

I recommend: Funding Post offers more information on benchmarks.