More Money in Seed Round

An entrepreneur raising money in seed round spoke to me today. One of the dilemma he had was not to raise more so that he can save equity for future rounds.

In my experience, you will always give up 26% to 30% of your equity in seed  round. So it makes sense to plan as to raise maximum cash. there are other problems too, when one tries to raise lesser money. Lesser VCs will be attracted to the deal if one just intends to raise lesser money (less than Rs. 2 cr for Indian startup).  VCs would like to put in more  cash in fewer companies instead of putting lesser cash in many companies.

And if more than one VC is interested in your deal, you will be able to get a higher valuation for the same company and therefor more cash for same equity.