Seed Funding
What is Seed Funding?
Seed funding is the initial capital raised by a startup to launch its business. It is usually the first official round of funding, often provided by angel investors, friends, or family members. Seed funding helps startups cover early expenses such as product development, marketing, and hiring. It typically involves selling equity in the company in exchange for the capital.
Sources of Seed Funding
- Angel Investors: Individuals who provide capital in exchange for equity.
- Incubators and Accelerators: Programs that offer funding, mentorship, and resources.
- Friends and Family: Early support from personal connections can help get the business started.