Seed-funding

/siːd ˈfʌndɪŋ/ noun

Definition

The initial capital raised by a startup to prove its concept and develop its product or service. This earliest stage of funding typically comes from founders, friends, family, or angel investors before the company is ready for venture capital.

Etymology

Agricultural metaphor that emerged in startup terminology during the 1960s, comparing early-stage funding to planting seeds that will grow into larger companies. The term emphasizes this as the foundational investment that enables everything else to grow.

Kelly Says

Seed funding amounts reveal how much cheaper it's become to start companies! In the 1990s, startups needed millions just to get started, but cloud computing and open-source software mean many companies now launch with seed rounds under $500K—democratizing entrepreneurship globally.

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