Entrepreneurs sometimes don't position themselves to take seed money from VCs. Some don't think to reach out to VCs that do seed investments and others avoid VCs at this stage.

In general, it's a good idea to take VC money in the seed round (if possible). Getting VC support early can make it easy to finance your company over the long term. Good VCs are typically pretty good at bringing new investors into the company for you. Once VCs are behind your company they have a vested financial and reputation-based interest in your.

However, hooking VCs early does present a risk.  While most VCs provide ongoing support for company's that they back during the Series A, some VCs do not guarantee that they will provide follow-on investments for Seed investments. They avoid this guarantee because they cannot be sure all their seed-stage portfolio companies will perform adequately before seeking additional financing, and want to allocate capital to the best-performing companies. If your seed round VC backer does not make follow-on investments in your company it could send a bad signal to future investors. However, if you manage your company well (and its prospects continue to be favorable) VCs will typically continue to participate in future rounds - so the primary reason you would avoid seed stage VC is if you don't believe in your team or your plan. And, if that's the case you shouldn't be starting the company to begin with.