For startup founders actively seeking investment, choosing the right investor isn’t just about securing funds—it’s about finding a partner who will help shape the future of your company.
Take, for instance, Brian Chesky’s partnership with Sequoia Capital. It wasn’t just about the funding—Sequoia brought critical strategic insight that helped Airbnb achieve its remarkable growth.
Similarly, consider Patrick and John Collison, who partnered with top investors like Sequoia Capital and Andreessen Horowitz to transform Stripe into a global payments leader. These investors offered not only financial support but also invaluable expertise, which played a pivotal role in Stripe’s incredible success.
That’s what the right investor can do: become an integral part of your startup’s journey.
The right investor brings expertise, industry connections, and the mentorship you need to thrive in a competitive landscape. This is especially important when you’re making early-stage decisions about your product, market fit, and growth strategies.
This guide showcases the 30 most active seed investors in 2024. The list comes from my team’s close connections with over 90 founders we’ve supported in building their products. I’ve also cross-referenced this information with data from Crunchbase, Private Equity List, and AngelList. These investors—both angels and VCs—are actively shaping the next wave of startups. I’ve also included practical insights on how to distinguish between angel and venture capital investors, as well as actionable steps for approaching them and building successful relationships.
If you’re already in the decision phase, you probably know these distinctions, but I’ve included them just in case you need a quick refresher or context.
If you’re in the midst of deciding which investor can provide the right support, this guide will help you navigate the landscape effectively and make informed choices.
Feel free to use the contents section below to jump around the guide as you need.
Contents
Understanding the Difference Between Pre-Seed & Seed Funding
To make an informed decision about which funding route suits your startup, it’s essential to grasp the nuances between pre-seed and seed funding—each with its own distinct role in the early stages of your startup journey.
Pre-Seed vs. Seed Funding: Which is Right for Your Next Step?
If you’re actively deciding which funding stage to pursue, it’s crucial to understand exactly how pre-seed and seed funding fit into your startup’s journey—and more importantly, which one is right for where you are now.
Pre-Seed Funding: Setting the Stage
Pre-seed funding is often the first financial leap for a startup. Typically sourced from founders themselves, family, or close connections, this funding is about transforming an idea into something tangible—like building an initial prototype or conducting early market validation.
If you’re at the very start of turning your vision into a reality, pre-seed funding allows you to:
- Create a Minimal Viable Product (MVP) that can be tested in the market.
- Validate Demand by understanding if the market has an appetite for your solution.
Pre-seed funding is most suitable if you’re still proving the core concept or building the bare essentials to engage early users.
Seed Funding: Gaining Momentum
Seed funding, by contrast, is for startups that have already demonstrated initial validation and are ready to take it to the next level. Typically ranging from $100,000 to $2 million, seed investment often comes from angel investors or VCs interested in backing startups with potential for significant growth.
If you’ve already achieved a degree of traction and need funding to:
- Develop Your Product Further with advanced features that appeal to a broader audience.
- Expand Your Team to fill crucial roles in product, marketing, or sales.
- Scale Initial Traction by pushing growth initiatives that bring your MVP to a larger audience.
Seed funding is the right next move if you’re ready to grow, validate product-market fit, and start gearing up for larger rounds like Series A.
Choosing the Right Path for Your Startup
Both pre-seed and seed funding are essential steps, but knowing which one suits your startup’s current needs can be the difference between getting stuck and breaking through. At this decision-making phase, you should assess:
- Where You Are Right Now: Do you have proof of concept, or are you still in the idea-to-prototype phase?
- What You Need to Move Forward: Are you looking to build, validate, or scale?
The choice you make now will set the foundation for future growth and impact the trajectory of your startup. If you’re ready to lay down that foundation, securing the right funding will help you fine-tune your product-market fit and prepare for larger, more competitive rounds.
Choosing Between VCs and Angel Investors: Which is Right for Your Startup?
If you’re in the decision-making phase and trying to determine the best type of investor to partner with, understanding the fundamental differences between VCs and angel investors is important. Each brings distinct advantages, and your choice will depend on what your startup needs most at this point.
Venture Capitalists: High Growth, High Stakes
Venture Capitalists (VCs) are typically larger firms that invest in startups with a high growth potential. They’re ideal if you’re looking for substantial funding and a structured approach to scaling.
- Industry Preferences: VCs usually have specific sector preferences and criteria for scalability. They focus on industries they believe will deliver substantial growth and high returns.
- Significant Funding with Structured Processes: If you need a major capital injection—often to scale rapidly—VCs are equipped to provide it. This funding typically comes in exchange for equity and often includes board involvement, meaning they will have a say in your strategic decisions.
- More Than Just Money: Beyond funding, VCs bring valuable resources—like strategic guidance, recruitment support, and introductions to industry contacts. If you’re at a stage where these resources are crucial to scale your startup, partnering with a VC could accelerate your growth significantly. Also known as Smart Money
VCs expect rapid growth and are driven by the goal of generating significant returns within a set timeframe. If your startup is in a position where rapid scaling is feasible and you’re ready for structured involvement, a VC may be the right fit.
Angel Investors: Flexible, Personalised Backing
Angel Investors are individuals who invest their personal funds in early-stage startups. They’re a great option if you’re looking for a more flexible approach and hands-on mentorship as you establish your business.
- Personal Motivations: Angels are often motivated by a passion for your industry, alignment with your mission, or even a desire to diversify their own portfolios. They are typically more flexible in their expectations and less rigid about immediate high returns.
- Smaller Investment, Stronger Personal Connection: Compared to VCs, angels generally invest smaller amounts, but their involvement is often more personal. Many angels, like Chris Sacca, who invested in companies like Twitter, Uber, and Instagram, are entrepreneurs themselves. This means they understand the complexities of building a business from scratch and can serve as strategic allies who truly understand your challenges.
- Patient Guidance: Angels are often patient with their investments, giving you more breathing room to focus on establishing product-market fit before rapid scaling. Their mentorship can be invaluable, particularly in the early stages where personalised guidance can make a significant difference.
Making the Decision
The choice between VCs and angel investors ultimately comes down to what your startup needs at this moment:
- If You’re Ready to Scale Rapidly: VCs bring significant funding, structured growth, and a wealth of resources. They’re best suited for startups that have proven traction and are looking to make big moves quickly.
- If You Need Personalised Support and Flexibility: Angel investors are ideal if you’re still navigating the complexities of building a solid foundation and need someone who understands the journey deeply, beyond the numbers.
Understanding these distinctions will help you attract the right partner to get your startup to the next level, ensuring that you have the type of support—be it rapid growth or flexible mentorship—that fits your current needs.
For more info on series funding and the differences between investor types, check out this article: Startup Series Funding – Everything You Need to Know.
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Approaching Investors for the First Time
Securing investment isn’t just about getting funds—it’s about finding the right partner to propel your startup to the next level. If you’re in the decision-making phase, the following insights are designed to help you build the right relationships and secure strategic backing.
Do Your Research with Purpose
At this stage, you need to understand exactly who aligns with your goals. Dive deep into each investor’s background, their sector focus, and their past investments. Resources like LinkedIn, AngelList, and Crunchbase can provide key insights. You’re not just looking for any investor—you’re identifying who can add the most strategic value to your journey and fit into your growth plan.
Tailor Your Pitch Strategically
Investors appreciate a tailored approach, especially when it’s clear you’ve done your homework. In your pitch, show how your startup fits seamlessly into their existing portfolio and how you align with their investment thesis. Highlight any shared interests or portfolio companies that directly connect to your mission.
When presenting your metrics, remember that investors don’t just want raw numbers. As Paul O’Brien put it in a recent interview with my co-founder, Paolo:
“Most founders report counts in their pitch decks: ‘The market is this big…’ or ‘We have this many users…’. I don’t care about raw numbers. What I need to know is: What is your share of that? What is your conversion rate? How much is it changing? Focus on percentages and deltas—not just counts.”
It’s crucial to provide context around these numbers—what percentage of the market are you capturing, how much are you growing, and what key changes are driving your progress? This approach not only demonstrates a good fit but makes it obvious why they are the right partner for your startup.
For more insights on pitching to investors, you might find this guide helpful: How to Pitch to Investors.
Build Relationships Now, Not Later
If you’re seeking investors, your goal should be to build relationships before you’re formally asking for capital. Attend key events, leverage social media, and strategically share your startup journey.
Investors are far more inclined to back founders they know and trust. By actively connecting now, you build credibility that will make a difference when you’re ready to close a deal. Think about platforms like LinkedIn or Twitter, or industry-specific meetups and pitch nights, to foster connections that will be crucial for your success.
As experienced angel investor, Armando Biondi, out it when he sat down with my co-founder, Paolo:
“There’s not really a ‘wrong’ time to approach an angel investor. There are different lifecycles of a company. From early-stage to late stage. Different stages have different requirements in terms of traction and validation.”
By starting early, you’re ensuring that when your company reaches the right stage, you already have the trust and network in place to make that crucial ask for funding.
Transparency as a Trust-Building Strategy
When you’re interacting with investors, transparency isn’t optional—it’s an advantage. Investors value founders who can realistically discuss their startup’s challenges. Be upfront about obstacles you’ve faced, metrics that didn’t meet expectations or technical hurdles. This level of honesty shows both self-awareness and a proactive mindset, which are qualities that foster trust.
Maintain Active, Value-Driven Communication
Effective investor engagement doesn’t stop after a pitch. Once you’ve begun conversations, it’s essential to maintain ongoing communication. Consistent updates—whether monthly or quarterly—keep you top of mind and demonstrate your capability to execute.
Use these updates to show traction: major achievements, progress towards key milestones, product launches, or important hires. This not only strengthens your relationship with investors but also reassures them of your ability to deliver, creating a foundation for future support—be it further investment or strategic guidance.
The Top 10 Most Active Investors for Seed Investments
To help you kickstart your search, I have highlighted the ten most active investors in the seed funding stages.
Below, you’ll find details about each investor, including their background, investment approach, and what makes them unique in the current market.
In the interest of full transparency, I have no affiliation with any of the investment firms listed below, and will receive no financial compensation should you decide to work with one of the investors listed.
1. Techstars
Techstars is a globally recognised accelerator that has helped thousands of startups gain the resources and mentorship needed to grow. Notably, some of my colleagues are proud mentors at Techstars, sharing their expertise to help early-stage founders succeed.
They are included in this list due to their extensive experience and success rate in seed investments, as well as their robust accelerator programs.
- Location: Boulder, Colorado, United States
- Type: Accelerator, Venture Capital
- Investment Stage: Convertible Note, Early Stage Venture, Non-Equity Assistance, Seed
- Portfolio Organizations: 4,639
- Crunchbase Profile
Unique Value
Techstars is one of the largest accelerators, providing both pre-seed and seed investment and a robust program that guides startups through the early stages of growth.
They provide structured programs that connect founders to mentors and industry leaders, creating a supportive ecosystem for innovation.
2. 500 Global
500 Global is a leading multi-stage venture capital firm with a diverse portfolio spanning many sectors.
They are on this list because of their strong global network, hands-on mentorship, and dedication to supporting founders from various industries, making them an excellent partner for early-stage startups.
- Location: San Francisco, California, United States
- Type: Accelerator, Angel Group, Micro VC, Venture Capital
- Investment Stage: Early Stage Venture, Late Stage Venture, Seed
- Portfolio Organizations: 2,408
- Crunchbase Profile
Unique Value
Known for its vast portfolio, 500 Global provides deep connections and hands-on support for founders in a variety of sectors.
The firm’s global reach and community-driven investment strategy are instrumental in helping founders leverage opportunities across borders.
3. SOSV
SOSV is a deep tech venture firm that invests in transformative technologies, with a focus on biotech, hardware, and climate tech.
They are included in this list due to their technical expertise and their highly supportive programs designed to help founders overcome complex challenges in deep tech industries.
- Location: Princeton, New Jersey, United States
- Type: Accelerator, Venture Capital
- Investment Stage: Early Stage Venture, Seed
- Portfolio Organizations: 1,411
- Crunchbase Profile
Unique Value
Specialising in deep tech, SOSV is highly involved in sectors like hardware, biotech, and climate technologies, offering deep expertise in technical challenges.
They also offer an accelerator model that focuses on equipping startups with not only the technical tools they need but also a solid business framework for scaling.
4. New Enterprise Associates (NEA)
New Enterprise Associates (NEA) is one of the largest venture capital firms in the world, providing support across a wide range of industries, from healthcare to technology.
They are included on this list due to their significant experience in helping startups scale from early stages to major growth milestones.
- Location: Menlo Park, California, United State
- Type: Venture Capital
- Investment Stage: Convertible Note, Debt, Early Stage Venture, Late Stage Venture, Seed
- Portfolio Organizations: 1,179
- Crunchbase Profile
Unique Value
NEA has a strong reputation for supporting founders through both the highs and lows of startup growth, providing strategic guidance and long-term support.
Their ability to provide funding across different stages is one of the reasons they have been a consistent partner for many successful startups.
5. Y Combinator
Y Combinator is a startup accelerator known for backing some of the most successful tech companies in the world, including Airbnb, Dropbox, and Stripe.
They are included due to their extensive network of alumni, strong mentorship, and track record of creating unicorns.
- Location: Mountain View, California, United States
- Type: Accelerator
- Investment Stage: Seed, Early Stage Venture
- Portfolio Organizations: 3,500+
- Crunchbase Profile
Unique Value
Y Combinator’s bi-annual batch programs provide intense mentorship, networking, and exposure to potential follow-on investors. But beyond the support, it’s crucial to understand the financial backing they offer:
- $125,000 for 7% equity: YC takes a 7% stake in each company in exchange for an initial investment of $125,000. This is a standard deal for all companies that join their program.
- $375,000 through a SAFE: YC also offers an additional $375,000 in the form of a SAFE (Simple Agreement for Future Equity). This SAFE is uncapped and comes with a “Most Favored Nation” (MFN) clause, meaning YC will receive the same terms as the best deal offered in the next funding round.
Their post-program support doesn’t stop at graduation. With continued guidance, access to a broad network, and the financial structure designed to help founders focus on growth, Y Combinator is an ideal partner for the initial stages of scaling a startup.
6. Sequoia Capital
Sequoia Capital is one of the most prestigious venture capital firms globally, known for backing iconic companies.
Their inclusion in this list is based on their commitment to helping founders navigate market challenges while building category-defining businesses.
- Location: Menlo Park, California, United States
- Type: Venture Capital
- Investment Stage: Early Stage Venture, Seed, Growth
- Portfolio Organizations: 1,500+
- Crunchbase Profile
Unique Value
Sequoia provides not only capital but also access to its internal knowledge bank, which has helped founders address critical growth challenges.
They also have one of the best networks in the industry, helping portfolio companies connect to experts, executives, and new market opportunities.
7. Andreessen Horowitz (a16z)
Andreessen Horowitz, or a16z, is a leading VC firm known for its proactive involvement with startups, especially in tech-driven sectors.
They are on this list due to their deep resources and sector expertise in everything from consumer tech to biotech.
- Location: Menlo Park, California, United States
- Type: Venture Capital
- Investment Stage: Seed, Early Stage Venture, Late Stage Venture
- Portfolio Organizations: 1,000+
- Crunchbase Profile
Unique Value
a16z has a large network of advisors, resources for scaling operations, and industry expertise that make them a valuable partner for early-stage startups.
Their unique focus on tech innovation, along with their media arm to educate founders, sets them apart as a powerhouse in the startup ecosystem.
8. Accel
Accel is a venture capital firm that focuses on early-stage investments in technology startups.
Accel is included for its hands-on approach, industry knowledge, and a strong global footprint that supports founders in scaling effectively.
- Location: Palo Alto, California, United States
- Type: Venture Capital
- Investment Stage: Seed, Early Stage Venture, Growth
- Portfolio Organizations: 1,200+
- Crunchbase Profile
Unique Value
Accel’s strong track record includes investments in Facebook, Slack, and Spotify, highlighting their ability to recognise and support high-growth potential companies early on.
They have a strong global presence, making them an excellent partner for startups looking to scale internationally.
9. Plug and Play Tech Center
Plug and Play Tech Center is a renowned accelerator and venture fund that has invested in over 1,000 startups globally.
They are included in this list because of their industry-specific accelerator programs and their global network, which gives startups visibility in international markets.
- Location: Sunnyvale, California, United States
- Type: Accelerator, Venture Capital
- Investment Stage: Seed, Early Stage Venture
- Portfolio Organizations: 1,000+
- Crunchbase Profile
Unique Value
Plug and Play’s network of corporate partners and vertical-specific accelerator programs make them an ideal partner for startups looking to enter strategic industries.
Their approach is holistic, providing access to not only funding but also global customers and large partners for proof-of-concept and pilot projects.
10. Lightspeed Venture Partners
Lightspeed Venture Partners is a venture capital firm that has backed numerous successful tech companies across various stages.
They are included on this list due to their proactive role in helping founders from inception through growth, with a strong focus on enterprise and consumer sectors.
- Location: Menlo Park, California, United States
- Type: Venture Capital
- Investment Stage: Seed, Early Stage Venture, Growth
- Portfolio Organizations: 800+
- Crunchbase Profile
Unique Value
Lightspeed is known for its expertise in enterprise software and infrastructure, providing essential operational support and strategic guidance to help startups scale effectively.
They also offer extensive follow-on investment support, helping startups grow from seed to later growth stages.
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Overview of the Remaining Top 20 Most Active Investors for Seed Investments
Below is a concise summary of the remaining 20 most active investors in seed funding, each with their key attributes to help you make a more informed decision.
| Investor Name | Location | Type | Investment Stage | Monthly Web Traffic |
|---|---|---|---|---|
| Kleiner Perkins | Menlo Park, California, US | Venture Capital | Seed, Early Stage Venture | 20,000 |
| First Round Capital | San Francisco, California, US | Venture Capital | Seed, Early Stage Venture | 15,500 |
| Bessemer Venture Partners | Redwood City, California, US | Venture Capital | Seed, Early Stage Venture, Growth | 12,300 |
| Index Ventures | San Francisco, California, US | Venture Capital | Seed, Early Stage Venture, Growth | 18,000 |
| Union Square Ventures | New York, New York, US | Venture Capital | Seed, Early Stage Venture | 13,000 |
| Insight Partners | New York, New York, US | Venture Capital | Early Stage Venture, Growth | 16,500 |
| Greylock Partners | Menlo Park, California, US | Venture Capital | Seed, Early Stage Venture | 14,800 |
| Battery Ventures | Boston, Massachusetts, US | Venture Capital | Seed, Early Stage Venture, Growth | 10,200 |
| General Catalyst | Cambridge, Massachusetts, US | Venture Capital | Seed, Early Stage Venture, Growth | 11,000 |
| Foundry Group | Boulder, Colorado, US | Venture Capital | Seed, Early Stage Venture | 9,500 |
| Forerunner Ventures | San Francisco, California, US | Venture Capital | Seed, Early Stage Venture | 8,000 |
| GV (formerly Google Ventures) | Mountain View, California, US | Venture Capital | Seed, Early Stage Venture, Growth | 19,300 |
| Benchmark Capital | San Francisco, California, US | Venture Capital | Seed, Early Stage Venture | 17,000 |
| Redpoint Ventures | Menlo Park, California, US | Venture Capital | Seed, Early Stage Venture | 12,700 |
| Lightspeed India Partners | Bengaluru, India | Venture Capital | Seed, Early Stage Venture | 10,800 |
| Point Nine Capital | Berlin, Germany | Venture Capital | Seed, Early Stage Venture | 7,500 |
| Balderton Capital | London, United Kingdom | Venture Capital | Seed, Early Stage Venture | 13,400 |
| Anthemis Group | London, United Kingdom | Venture Capital | Seed, Early Stage Venture, Fintech | 9,200 |
| LocalGlobe | London, United Kingdom | Venture Capital | Seed, Early Stage Venture | 8,600 |
| Partech Partners | Paris, France | Venture Capital | Seed, Early Stage Venture, Growth | 6,900 |
Insights into Investment Trends
Staying up to date with investment trends is crucial for you at this point in your journey.
Understanding where the market is heading helps you identify the right partners, align your startup’s focus with investor interests, and stay competitive in an evolving landscape.
Act on these insights now to secure the best partners before the competition intensifies.
By keeping an eye on emerging sectors and geographic shifts, founders should take immediate action to tailor their strategies, ensuring they capitalize on these opportunities without delay to attract the most relevant investors and anticipate market needs.
Emerging Trends in Early-Stage Funding
In 2024 deep tech (notably AI) and climate technology are receiving increasing attention, with more VCs and angel investors exploring opportunities in these areas.
Reflecting insights from Blackrock’s Global Outlook Report show that there is a notable increase in investments directed at transformative areas like artificial intelligence and infrastructure supporting the low-carbon transition.
These ”mega forces” are shaping new opportunities across sectors, providing innovative avenues for startups. These sectors represent significant opportunities for innovation, and many investors are looking to support transformative solutions that address pressing global challenges.
Deep tech startups working on biotechnology, quantum computing, and AI are gaining strong momentum, while climate tech solutions focused on renewable energy, carbon capture, and sustainable food systems are also garnering interest.
Another trend is the increasing focus on geographic diversity, with investors looking beyond the traditional tech hubs of Silicon Valley and London, actively considering promising startups in regions like Southeast Asia, Latin America, and Africa.
Investors are now attracted not only by untapped market potential but also by the demographic shifts and emerging middle class, which presents a significant customer base.
Moreover, digital transformation in these regions is creating new opportunities for startups to address localised challenges. Investors are particularly drawn to these regions because of the untapped potential and emerging middle class that presents a large customer base.
Moreover, the digital transformation in these regions is creating new opportunities for startups to solve localised challenges.
Focus Areas of Angels vs VCs
Angel investors continue to focus on sectors where they have personal experience or deep interest, often preferring startups that may not have typical Silicon Valley appeal but show solid growth potential.
They are drawn to mission-driven founders and are typically more patient, and willing to nurture ideas that may take time to flourish. For founders ready to take decisive action, angel investors can provide quick, personalised support, making them a valuable resource in the early stages of building relationships. For founders, angels can be invaluable in the initial stages, providing the time and space needed for iteration.
VCs, in contrast, are doubling down on sectors where they foresee rapid growth and significant returns, particularly those leveraging cutting-edge technologies like AI and biotechnology.
They are increasingly focusing on startups that offer scalability, where there is potential to generate exponential growth and capture a large market share. Many VCs are also expanding their investments into fields such as Web3 and cryptocurrency, showing a continued interest in future technologies.
Conclusion
Navigating the early-stage investment landscape can be daunting, but the right investor can make all the difference in your startup’s journey.
By understanding their expertise, building relationships, and crafting a targeted approach, you increase your chances of finding not just an investor, but a long-term partner who truly believes in your vision.
A good investor can help open doors to new opportunities, provide the expertise to overcome challenges and serve as a sounding board as you build your company.
Remember, the journey to successful funding is about more than just securing capital—it’s about building partnerships that align with your mission and values, paving the way for growth and innovation.
As Steve Jobs famously said:
“Great things in business are never done by one person; they’re done by a team of people.”
Thanks for reading.
