Hunter Walk shares why startups are not sharing about the seed round. He made several valid points but I think this quote covers the gist.
Funding announcements used to be the credibility you’d need to get a meeting with the CTO or other management with purchasing power and a RFP. Now the employees carry your technology into the enterprise via their own phone and cloud services. The individuals and team managers have more sway. Software is purchased at $99/month can be put on an expense report and the average enterprise worker is willing to try out lots of tools to find the one that works for them. Word of mouth spreads faster and sales cycles are shorter. Link
However in Asia, I believe we have yet to reach the state similar to the West. Many startups still aim and want to announce their seed round or even pre-seed round (aka in local context might be known as grants).
I believe besides the hope to get more press and publicity, the real reason that a startup announced their seed round is to satisfy the founders ego. It acts as a way for the founder to show “see I told you my startup idea would work, someone put their money with me.” The higher the amount raised, the more “egoistic” the founder gets (I can be wrong on this because some of the founders I met are very humble)
Nevertheless, this can be both a good and bad sign. The good is now that the founders get a lump sum to prove to the world that the idea would work. The bad is the unnecessary “press” the founders are getting, the added pressure of making the idea work.
What do you think? Am I right?