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The ask

How much should I raise at seed? Working the dilution math

The honest answer isn't a single number — it's the smallest amount that funds you to the next round's bar without over-diluting. Here's how to work it from the milestone backward, check it against what's typical, and see the dilution it implies, using the same arithmetic a partner runs on the ask.

Worked from the bands in the IR Narrative red-flag detector · ~6 min read

Start from the milestone, not the round

A seed round exists to buy you to the Series A bar — roughly $1.5M+ ARR, growing, with the efficiency to justify an A. So the sizing question is really: what does it cost to get there, plus a buffer? Raise for the milestone and 18–24 months of runway, then sanity-check the number against the market — not the other way around.

1

Cost the milestone + buffer

Take your target monthly burn at the team size you need, multiply by the months to the milestone plus a cushion for slippage. Say you need $200K/mo average burn over 20 months → $4.0M. That's your milestone-driven ask.

2

Check it against the typical seed band

US median seed rounds run $2M – $5M. A $4.0M ask sits comfortably inside. If your milestone math lands above $10M (2× the top of band), a partner will ask why a seed needs that much — often the honest move is a smaller seed to a nearer milestone.

3

See the dilution at the median post-money

Median seed post-money is ~$24M. Dilution at that price is ask / (post + ask):

AskImplied dilutionRead
$2.0M7.7%light — check runway is enough
$3.0M11.1%in band
$4.0M14.3%in band (healthy)
$6.0M20.0%top of the healthy band
$9.0M27.3%over — too big, or you're pricing above median

The healthy primary-round dilution band is 10–25%. Inside it, the ask reads as sized to the stage. Above it, either the raise is too large or you're implicitly claiming an above-median valuation — which you then have to defend with traction.

Caveat: this uses the median post-money as the anchor. If your traction is top-quartile you may price above it, which lowers dilution for the same dollars — but you can't assert that; the metrics have to earn it. And a below-band raise isn't automatically "good": if it doesn't buy ~18–24 months to the Series A bar, you'll be re-raising before you have the proof.

The quick rule of thumb

Then the ask slide has to make it milestone-anchored: "$4M buys 20 months to reach ~$2M ARR / Series A metrics, split X% product / Y% GTM / Z% G&A" — not "to grow the team." An ask with no milestone is the single most common way the last slide undoes the deck.

Get your ask stress-tested with the worked math

The report runs the round-size, dilution, multiple and runway checks on your actual ask and rewrites your use-of-funds slide to be milestone-anchored.

Request the report — $490 Try the ask checker