Capital that initially funds a new business or idea, attained from individual assets, family/friends, or angel investors. 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 are awarded without taking a stake in the business.
Examples
The following are articles that detail how to determine the necessity of 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?: Written by a seed-stage investor, helps entrepreneurs determine if seed funding is the right approach when setting up their business.
