Capital that initially funds a new business or idea. It is attained from individual assets, family, friends, or angel investors. It is typically used to finance product development, market research, and business formation. Seed investors often gain a stake in the business. The NIH’s SBIR and STTR programs are a major source of seed funding in the United States, and these awards are given without taking a stake in the business.
Example
The following are articles that describe how to determine the need for seed funding and how to find it.
- How to Raise Seed Capital and Grow Your Startup – Gives an overview of seed funding as well as how to approach acquiring such investments.
- Is Seed Funding the Right Answer for Your Startup? – Helps entrepreneurs determine if seed funding is the right approach when setting up their business. Written by a seed-stage investor.
Read More: Resources on Seed Money
