Seed Capital
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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.
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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.
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