How to Raise a Seed Round in 2026: Ask Jason | E2294

Introduction to the Secret Group Chat and Community Building

• The discussion begins with an introduction to a secret group chat on X, formerly known as Twitter, where people have questions for Jason, and Lon Harris is present to provide these questions, which may be spicy, political, technical, or related to startups, life, health, or dating 10s.
• Jason mentions that to join the community, people can DM the handle x.comtwi startups, and if they are active in the group and participate in discussions, they may be added to a higher-level insiders group 2m6s.
• Jason plans to build community by hosting more dinners and live shows, as people want to get together in person, and he wants to get out in the world more to interact with humans 4m30s.

Startup Challenges and Investor Advice

• The first question comes from Richard Carell of Quanto, an AI-powered wealth management platform, who asks for advice on how to combat the challenges facing startups with an early-stage status, despite having advanced and innovative technology 6m30s.
• Jason advises that each investor has a different area of specialty, and what they say is not as important as what they do, so it's essential to look at their previous behavior and investment history to determine if they are a good fit for the startup 8m40s.
• Jason emphasizes the importance of first-principles thinking, which involves looking at an investor's previous behavior and investment history to determine if they are likely to invest in a startup at a particular stage, rather than relying on what they say in social settings 10m50s.

Foundry University and Startup Programs

• Foundry University is designed as a product that occurs in three different geographies, including Riad, Tokyo, and the US, with six cohorts a year, and it explicitly asks people to come who have two or three founders and do not need to be incorporated or have customers yet, with the goal of meeting them in year zero 10s.
• Family offices are not typically a good fit for seed round investments, as they often invest in private equity deals and may not be able to provide the smaller amounts of funding that startups are looking for, and it's essential to divorce the nice things they say from the reality of what they do 1m30s.
• Startups should look to programs like Y Combinator, Techstars, Antler, A16Z, Pair, and Sequoia's Arc, as well as Founder University Launch Accelerator, to get their initial funding and first customers, and then they can go back to family offices or other investors for later-stage funding 2m40s.

Seed Round Fundraising Process

• To get a seed round, startups need to contact a large number of seed funds, with a typical funnel being 150 seed funds, 50 meetings, 20 second meetings, and two term sheets, and this process requires emailing and trying to get in touch with many different investors 4m10s.
• Second meetings with investors are notable and should be the primary focus, as people are not obligated to take a second meeting, and this is a key indicator of interest in the startup 6m20s.

Founder Education and Training Programs

• The concept of a Founder Community College is being discussed, which would help solo founders or small teams build great products without worrying about fundraising, board seats, or cap tables, and this could be a level between Founder University and other programs 10m30s.
• There is a need for programs that provide training and support for founders, and Founder University is exploring the idea of giving a degree or providing accreditation for its programs, including an associate in training program for the venture side of the business 12m10s.
• The venture capital career path is a three-year program with a salary range of $60,000 to $90,000, and the company hires multiple people with the expectation that some will opt out or not continue, but the goal is to keep one-third of them as all-stars in the firm 10s.
• There is no traditional education or degree available for venture capitalists, and some people have expressed interest in paying for a program to learn how to be a venture capitalist, but it is not legally possible to give a degree in this field, only a certificate 1m42s.

Grasshopper Bank and Financial Services for Startups

• Traditional banks can be a hindrance to founders who need to move quickly, with long approval processes and outdated systems, which is why Grasshopper Bank was created as a federally chartered bank with a modern financial tech stack 3m30s.
• Grasshopper Bank offers a range of benefits, including quick account opening, real-time transfers, and AI tools, with no unnecessary fees, and is offering a $500 cash bonus to valued listeners who use the promo code 4m20s.

Degree Programs and Venture Capital Education

• To offer a degree program, it would be necessary to partner with a local university in the US, but there are some universities in the UK that will allow the use of their programs to offer a UK-accredited degree 6m10s.
• There are also some islands that offer degree programs in certain fields, such as medical practices, which can be recognized in the United States, but the legitimacy of these programs is unclear 7m30s.
• The goal is to create a high-quality associate and training program that could potentially be offered for a fee, similar to the Kaufman Fellows program, which charges $80,000 or $90,000 for two years 9m40s.

Kaufman Fellows Program and Venture Education

• The Kaufman Fellows program is a two-year program with a tuition of $80,000, and an application fee of $100 if submitted by the early deadline, or $300 if submitted later, and it is considered to be an elitist group with a diverse range of fellows, including Jenny Fieldling and Monique Woodward 10s.
• The program's curriculum is not publicly available, but it would be beneficial to study and understand what the program entails, and potentially create a better and more affordable alternative 2m6s.

Founder and Venture University Concepts

• The idea of creating a founder university or a venture university program is proposed, which would teach students how to be a founder and embed them in companies, and potentially partner with a university to offer a degree 4m30s.
• The founder university program could have two tracks, one for company building and one for venture university, allowing students to major in one and minor in the other, and learn both sides of the table 6m40s.
• The program would not only teach entrepreneurship and venture capital, but also important communication skills such as media training, creating a newsletter, social media, and podcasting 8m50s.

Communication Skills for Founders and Investors

• The importance of having good communication skills is highlighted, as many brilliant founders and investors struggle to effectively communicate their ideas and stories, making them difficult to book as guests on podcasts 10m40s.
• The conversation also touches on the topic of venture capitalists having their own podcasts, and the fact that some well-known individuals in the industry are not technically billionaires, despite being referred to as such 12m30s.

Financial Freedom and Startup Costs

• Having $10 million in wealth creation is considered the threshold for having "fuck you money," which allows individuals to have the freedom to pursue their interests without financial constraints, and with a 5% return on investment, this amount can generate around $500,000 per year 42s.
• The concept of "fuck you money" provides the financial security to live comfortably, travel, and pursue hobbies, as exemplified by the idea of being able to return to Florence 1m4s.
• The amount of capital required to launch a startup has decreased significantly over the past decade, with the cost of getting a product to market and achieving product-market fit dramatically reduced due to advancements in technology and outsourcing 6m34s.
• In the past, it would take around $3 million and 12 months to get a product ready for market, with expenses including PR firms, office space, and legal fees, whereas now these costs have been greatly reduced 8m10s.
• Traditional must-haves for startups, such as hiring a PR firm, getting an office, and putting down a letter of credit, have become optional, and expectations have shifted, with investors now prioritizing different factors when evaluating early-stage startups 10m30s.

Modern Startup Tools and Hiring

• The use of services like LinkedIn Hiring Pro has become essential for busy founders to find the right candidates for their team, allowing them to focus on other aspects of their business 14m20s.
• The time from idea to first customer has significantly decreased, with some companies achieving product market fit in just days or weeks, allowing them to convince people to pay for their product 2m6s.

Startup Evolution and Accelerator Programs

• The process of building a startup has evolved, from working at home with a small team and limited resources to now being able to build a product and reach $100K in revenue before applying to accelerators like Y Combinator or Launch Accelerator 42s.
• Programs like Y Combinator, Tech Stars, Antler, and Launch Accelerator provide support for startups, and some companies are now being built around products created through bounties programs, such as the one on startups.com 42s.
• The bounties program has led to the creation of innovative products, such as a real-time fact checker, and there are plans to incubate some of these companies and hire their founders 4m30s.

Competing with Large Tech Companies

• Startups can differentiate themselves from larger companies like OpenAI and Anthropic by building interfaces and features around their products, creating a community, and providing support, which are not typically provided by large language models 10m30s.
• Founders can focus on creating a unique feature set that is not easily replicable by larger companies, and by doing so, they can establish a competitive advantage and protect themselves from being overshadowed by bigger players in the market 12m0s.

Virtual Travel Agency Concept

• A group of friends, including Amanda, William, and Bianca, are planning a trip to Tokyo, where they research and vote on destinations, meals, and activities, and then finalize an agenda, which could be a concept for a virtual travel agency that utilizes AI and local guides 10s.
• The idea is that while AI, such as chat GPT, can provide information, it cannot replace human services like a virtual travel agency that offers personalized itineraries, local guides, and support services, which can be paid for on an hourly basis or for specific services 2m6s.
• When planning a trip, it's natural to use AI as a tool, but it's also beneficial to layer other tools and platforms, such as Viodor and Trip Advisor, on top of it to get the best results, and community, multiplayer mode, and support services can enhance the experience 4m30s.
• In Japan, there are food guides and local experts who can provide unique experiences, such as taking tourists to hidden gems that are not well-known to American tourists, and services like renting a local guide or a "jolly fat guy" who can take tourists on tours 6m40s.
• There are also services in Japan where people can rent a fake family member, boyfriend, or girlfriend for companionship, and similar services can be offered to tourists, such as renting a local guide or expert who can provide a personalized experience 10m20s.
• The concept of an AI planner can be enhanced by offering additional services, such as connecting tourists with local guides, booking activities, and providing translation services, which can be paid for on an hourly basis or as a package deal 12m50s.

Investor Evaluation and Matching

• The idea is to provide a unique and personalized experience for tourists, such as booking a golf cart tour with a local guide who can provide access to exclusive areas, like crypts under churches, and offer a deeper understanding of the local culture 15m10s.
• Tri Paradot on X is a dating app for serious daters that compares its service to being set up by a friend, offering a new take on the dating app, and their question revolves around finding the right investor with real alignment beyond category fit 10s.
• When evaluating founders, investors have different sets of signals and processes, such as some only investing in companies that come through their network, while others, like Y Combinator, meet with a certain number of companies that apply every week 2m6s.
• To increase the chances of finding the right investor, it is recommended to study what people have already done, get a Crunchbase account, follow different firms on social media, and figure out which firms invest at the same stage and in similar companies 6m42s.
• Investors have different preferences, such as not investing in biotech or military tech, and it is essential to research and understand these preferences to find the best match for a particular company 8m10s.

Legal and Operational Setup for Startups

• Forming a Delaware CC Corp can give a new company a real identity, including an address for public filings, a domain, a custom website, a business email, and a phone number, which can be done quickly and easily with the help of a registered agent 4m6s.
• When approaching investors, it is crucial to highlight the alignment between the company's business model and the investor's preferences, such as sharing similar investments or experiences, to increase the chances of a successful pitch 10m42s.

Seed Round Fundraising as a Full-Time Effort

• Raising a seed round is a full-time job that requires treating it as such, with one of the co-founders focusing on corporate development, which is another way of saying raising money, and this is a tedious task that involves hunting, pecking, and doing research 10s.
• To successfully raise a seed round, founders need to collect investors and build deep, meaningful relationships with them over time, and this process can be viewed as a sales funnel where each investor needs to be qualified 2m6s.
• Qualifying investors involves researching their investment history, stage, and check size, as well as determining whether they lead or follow deals, and this process can be time-consuming, requiring a significant amount of work and legwork 2m6s.
• Founders may need to reach out to multiple founders to get introductions to venture firms, and this can involve sending a large number of emails to get a few meetings, which can ultimately lead to getting on the radar of a few venture firms 2m6s.

Creative Approaches to Investor Outreach

• The process of raising a seed round can be compared to applying for summer jobs as a teen, where filling out a hundred applications may be necessary to get one interview and one job, and founders need to be creative and persistent in their efforts 4m30s.
• The startup culture in the Bay Area is unique in that people are willing to help others without expecting short-term rewards, and this culture can be experienced by going to the Bay Area and meeting people, where founders can connect with investors and other entrepreneurs in a casual setting 6m40s.
• Some founders have found creative ways to connect with investors, such as putting a sign on their laptop with their pitch and sitting in a cafe in a location where venture capitalists tend to congregate, which can lead to chance meetings and potential investments 8m20s.
• To raise a seed round, having visibility in the right place is crucial, and being seen as a knowledgeable and skilled individual, such as coding, can be beneficial 10s.

Hardware Startups and Robotics Opportunities

• A bootstrap hardware founder nearing profitability should consider getting investors, as investors' perception of hardware has changed, and it is now seen as a way to get lock-in and create a moat 2m6s.
• Hardware is no longer a blocker for investors, and many hardware companies have succeeded, such as Terra Cafe and Cafe X, which have found ways to increase the fidelity and usefulness of their products 2m6s.
• Raising capital for a hardware company can be challenging, but options like Kickstarter, viral ads, and finding investors who are comfortable with investing capital are available 2m6s.
• The rise of robotics and commoditized robots may supercharge the hardware industry, with potential applications in homes and businesses, and companies like Amazon may be interested in using robots to sort packages at a lower cost 2m6s.
• The business model for robotics could involve paying a lower upfront cost for the hardware and then a monthly fee, such as $12.99, to use the robot, which could be more cost-effective for companies like Amazon 2m6s.
• Companies that develop robots, such as Figure, could offer their products to companies like Amazon at a lower cost, such as $4 an hour, and provide maintenance services, which could be a lucrative business opportunity 2m6s.
• The cost of maintaining robots can be high, with an estimated $40,000 per year, but this cost can be abstracted into a lease model for consumers, such as a $299 monthly lease for 500 hours of robot time, with an additional dollar charged for each extra hour used 10s.

Security and Robotics Applications

• The lease model can be compared to leasing a car, where extra mileage is charged, and this model can be applied to various applications, including security robots that can provide 24-hour surveillance at a lower cost than human security guards 42s.
• Security robots can be more effective than human security guards, as they do not fall asleep and can provide 360° camera coverage, making them a better option for security purposes, with a potential cost of $10 per hour 1m30s.

Public Figures and Disliked Personalities in Tech

• The discussion shifts to a question about the person in Silicon Valley who is most disliked, and the answer given is Mark Zuckerberg, due to his consistent prioritization of self-interest over the well-being of humanity, particularly in regards to user privacy and the treatment of partners and founders 4m30s.
• The criticism of Mark Zuckerberg is not personal, but rather based on his actions and decisions as the head of his companies, including the copying of ideas, mistreatment of partners, and lack of consideration for the impact of his products on teenagers, particularly teenage girls, and the optimization of platforms to keep users online 6m0s.
• The conversation also mentions Sam Waltman, who is disliked due to his treatment of Elon Musk, but the speaker notes that they had previously liked Sam on a personal level 9m30s.

Leadership and Ethical Behavior in Tech

• The conversation touches on the topic of successful businesspeople, such as Elon and Sam, who have been known to make self-interested decisions and not worry about what others think of them, which can be a quick path to extraordinary success 10s.
• Being a high-level tech CEO often requires qualities that might be associated with someone who is considered a jerk or not a very nice person, and this can be seen in the way some CEOs behave in their personal and professional lives 2m6s.
• A New Yorker piece about Sam was mentioned, which reportedly called his behavior sociopathic, but this label was not used by everyone, and the accuracy of the piece is uncertain 4m42s.

Media and Public Perception

• The importance of not taking things personally and not making personal attacks was discussed, with the example of a past incident where a comment was made about someone in the military tech industry, and an apology was later issued for the tone of the comment 6m15s.
• Podcasting every day can lead to reacting and giving hot takes, which can sometimes result in saying something that might be regretted later, and it's essential to consider the potential consequences of one's words 8m10s.
• The conversation also touched on the topic of founders who have allegedly engaged in unethical behavior, and the importance of considering multiple perspectives and not jumping to conclusions, as seen in the example of a founder supported by Y Combinator and General Catalyst 10m0s.

Information Verification and Media Literacy

• It is essential to verify the accuracy of information before sharing it, as a significant percentage of news stories may not be entirely accurate, and it's crucial to take an extra beat to confirm the truth, considering factors like AI-generated content, community notes, and potential biases 10s.

Travel Experiences in Italy

• A trip to Italy was discussed, where the visitor spent a week in Rome, staying in an Airbnb near the Castell St. Angelo, and enjoyed walking distance to the Vatican, as well as taking a crypt tour and visiting the Ephesi Gallery in Florence 4m37s.
• The trip to Italy included trying amazing food, such as a pasta restaurant called Asteria Pastella, where they poured brandy into a huge wheel of cheese, lit it on fire, and mixed pasta in the cheese bowl, topped with white truffles 6m34s.
• However, the crowds and tourists in Italy were overwhelming, and it was frustrating to see people taking photos in front of famous paintings and sculptures, such as Bacelli's Birth of Venus and Caravagio's Medusa, instead of being in the moment 8m15s.

Tourist Behavior and Museum Etiquette

• The use of selfie sticks and 360-degree cameras in tourist spots, such as art museums and casinos, was also criticized, as it can be distracting and unnecessary, with many of these places already being well-documented 10m30s.
• The idea of taking photos in museums is discussed, with the suggestion that people should be able to appreciate the artwork without the distraction of taking pictures, and that taking a quick photo of oneself in front of a favorite piece is acceptable, but one should not be constantly taking photos 10s.

Museum Experiences and Ideas for Improvement

• A proposal is made to extend the hours of museums, such as the Uffizi, and charge a premium for visitors who want to attend during off-peak hours, for example, from 6 to 8 p.m. or from 10 p.m. to 12 a.m., with the possibility of a hundred euro experience per person 2m6s.
• The concept of a more exclusive and peaceful experience in museums is explored, where visitors can enjoy the artwork without the crowds, and the possibility of offering a more expensive ticket option for those who want to visit during less busy hours is discussed 4m30s.
• The experience of visiting famous museums, such as the Louvre and the British Museum, is shared, with the observation that it can be overwhelming and difficult to appreciate the artwork due to the large crowds, and the idea of visiting these museums at night, such as from 8 to 10 p.m. or from 10 p.m. to midnight, is suggested as a more enjoyable experience 6m0s.
• A personal anecdote is shared about visiting the Rothco exhibit in Florida and the Uffizi in Florence, and the experience of trying to appreciate the artwork in a crowded environment, with the conclusion that it would be better to have a more exclusive experience 8m0s.
• The idea of offering a VIP experience in museums, similar to the VIP line at the Uffizi, where visitors can pay an extra fee to have a more exclusive experience, is discussed, with the example of paying €30 per person for a VIP ticket 10m0s.
• The possibility of offering a more expensive experience in museums, such as a hundred euro experience per person, is discussed, with the idea that some people, such as Uber drivers or housekeepers, may be willing to pay a premium for a more exclusive experience 12m0s.

Travel Experiences in Santorini and Museum Reflections

• The town of Oya in Santorini is described as having white houses and blue dome churches, similar to what is often seen in Instagram posts, and a visit to this town, as well as the town of Fira, and a black sand beach, were part of a recent trip 10s.
• There is a mention of not having a problem with meta glasses in certain situations, such as in a museum, where they can be used to record, which is considered better than using a selfie stick 2m6s.
• The idea of taking pictures or recordings in a museum is discussed, with the opinion that being present in the museum is what truly matters, and that looking at art on the internet or taking pictures does not compare to the real experience of standing in front of a piece of art, such as a Rothco 2m6s.
• The conversation touches on the idea that taking selfies, even in front of famous art pieces, can be unnecessary and that the experience of being in the museum is more important than capturing it through photos or recordings 2m6s.