Seed funding

The term ‘seed’ suggests that it is very early investment which is meant to support the initial growth of business until it can of its own, or until it is ready for further investment.

What is seed funding?

Seed money, also referred to as seed funding and seed capital, is a form of funding in which an investor invests their capital into a start-up in return for an equity stake or for a share in the profits of a product.

Seed funding will typically be accessed to cover the initial costs of getting a new business up and running, such as for developing a business plan and initial operating expenses including rent, payroll, business insurance, and even research and development costs (R&D).