Seed Capital
Contents
Join 6000+ product leaders
Sign up for our newsletter &
get the best product tips
straight to your inbox
get the best product tips
straight to your inbox
What is Seed Capital?
💬
Definition of Seed Capital
Seed capital is a relatively small investment that contributed to a startup at the very earliest stage of the venture.
Of course, when we say “relatively small” we are still talking about some pretty significant figures. A seed round could see anywhere between $50,000 to $2 million raised.
Seed capital is usually a precursor to larger investments that come in rounds and is commonly associated with tech startups.
Get our Mastering Prioritization eBook
Learn how to prioritize by making it a simple process, to build products that stand out. Learn more about how to source insight, choose the right prioritization framework and much more.
The amount of seed capital will depend on the business but is always smaller than later venture capital investments.
General FAQ
What does venture capital mean?
Venture capital is capital provided for new business by external investors with an eye on the potential for growth in the long run.
What is pre-seed funding?
Pre-seed funding is financing provided to start a business and develop a minimum viable product (MVP), which can be used to gain further funding.
How to raise seed capital?
Seed capital can be raised by approaching friends or relatives with money to invest, though venture capital firms and angel investors are common choices, too. A business plan is typically required to demonstrate the business concept, goals, expected sales, estimated ROI, etc.
Building better products starts here
Join thousands of product managers and makers who already enjoy our newsletter. Get free tips and resources delivered directly to your inbox.
