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What is seed investing?
Matt Ober
May 27, 2025
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How seed investing is defined varies a ton! What does seed investing look like at Social Leverage?
Seed investing varies widely. From valuations to what the product looks like, to revenue and everything in between. California-based companies vs. the Midwest vs. Toronto vs. NYC- the valuations and round sizes are all over the place. One thing you can’t do, is take the median “seed” valuation and round sizes from Carta and use that as your barometer. There are too many details you need to unpack.
So, what does seed investing mean for Social Leverage as we invest out of our Fund V?
We invest in companies at a post-money valuation of $10m or less. Are there exceptions? Sometimes. But our sweet spot is $4m - $8m post.
We look for companies with a product in market, a few clients, some revenue, and founders with deep domain expertise.
We focus the majority of our portfolio on fintech and vertical SaaS. We have done sports technology, media, and consumer investments over the years.
We write $1m - $2m initial checks.
We lead rounds. We take board seats or board observer.
We are hands-on and want to help. We save 2:1 in our portfolio for follow-ons to continue to back our breakout winners.
At the end of the day, we want to work with founders where we can be a value add and with founders we enjoy talking to and helping on a weekly basis. It’s a long journey. Some of the best companies take 10+ years to see success from the Seed round. Who you invest in is as important as what you invest in.
Follow news on our portfolio companies on the Social Leverage Blog😀
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