Recent seed deal terms reflect an alignment of interests between seeders and managers, as well as between seeders and other investors, according to Seward & Kissel’s eleventh annual study of seed transaction deal points (Study), which is based on data from the 2024 calendar year. “Seeders are focused on being the best partner they can be and are mindful that any term that pressures a manager’s ability to be maximally effective when fundraising should be carefully considered and precisely scoped,” C. Gerhard Anderson, III, partner at Seward & Kissel and lead author of the Study, told the Hedge Fund Law Report. “The continued focus on aligning the seed investor’s interests with the interests of the manager and the other fund investors remains a core orienting principle, and the most successful seeders are curating their asks and needs accordingly.” For example, most seed deals now include working capital support for the manager. Other areas covered by the Study include revenue shares, lockups, key person provisions, termination of seeder economics and ongoing seeder rights. This article examines the key takeaways from the Study, with additional commentary from Anderson. See “Study Tracks Evolving Seed Deal Terms” (Aug. 18, 2022).