[AstroChimpHam]

I have a number of acquaintances in the situation where they tried to go out and raise a proper Bay Area seed of $1-1.5m, got told they needed more traction, and wound up giving up part of the way through, stopping the round at ~$300k and calling it an angel. Then, traction appears and they come back to finish that initial seed round. Every time I've heard of this happening, the issue was investors becoming more careful with their money rather than founders underestimating how much money they'd need.

Small sample size and all, but if this is the way things are going, it'd be a good thing and force more founders to focus on metrics that matter early.

[nostrademons]

I've heard the same, or founders that (barely) raise their target seed amounts, but then traction appears and suddenly everyone wants to invest in a follow-on seed. Again, sign of a healthy market. It's not 2013/2014, when it seemed like anyone could raise on pedigree or potential, but capital is available for startups who hit their metrics.

[Alex3917]

These days it's pretty standard for seed to be the second, third, or even fourth round.

E.g. this scenario is entirely plausible:

1) Friends and family

2) Accelerator

3) Some combination of pre-seed / angel (depending on whether it's individual or institutional money)

4) Seed

Seed is basically just the new A.