Seed Funding

Definition

  • The funding initially risen to start a business venture. Oftentimes, seed funding comes from the business's founders or the friends and family of the founders. The startup will use this seed funding to cover operating costs and research and development costs until the venture generates revenue, at which point the company tries to interest venture capitalists. Also known as "seed money," "seed capital," "angel funding," or "friends and family funding."

Synonyms
capitalize, pay for, stakes, finance

Alternate Spellings
seed capital, seed money, friends and family funding

Related Terms and Acronyms

  • Angel Investors Definition,
    • Private individuals with capital to invest in business enterprises.
  • Equity Definition,
    • The value of a property minus outstanding mortgage debt and other liens.
    • Ownership in an asset.
  • Initial Public Offering (IPO) Acronym,
    • When shares of a corporation become available to the public for the first time.
  • Private Equity Definition,
    • Equity not traded on a stock exchange.
  • Security Definition,
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • Property designated as collateral.
    • A document stating ownership of a stock or bond.
  • Startup Company Definition,
    • A recently founded company that works on new products and services.
  • Stock Definition,
    • A share of the ownership of a company.
  • Venture Capital (VC) Acronym,
    • Financial capital given to startup companies.
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