What is Seed Funding?
Seed Funding refers to the initial capital provided to start a new business or launch a new product. It is often the first stage of funding in a startup’s life cycle and is used to cover initial expenses such as market research, product development, and early marketing efforts. Seed funding is typically provided by angel investors, venture capitalists, or even friends and family who believe in the potential success of the startup. In return for their investment, seed investors usually receive equity in the company.
- When any startup is at the seedling stage, the funding raised by the startup is called Seed funding.
- This funding is for the raised at the inception, ideation, or beginning stage.
- The entrepreneur needs to understand what constitutes seed funding and why seed funding is so crucial for building businesses in the early stage.
Table of Content
- Who are Angel Investors?
- Types of Angel Investors
- Places to Look for Angel Funding
- Types of Seed Funding
- Advantages of Seed Funding
- Risks Associated with Seed Funding
- Seed Support System – Technology Development Board (TDB)