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
pay for, stakes, capitalize, finance
Alternate Spellings
seed capital, friends and family funding, seed money
Related Terms and Acronyms
- Angel Investors — Definition,
- Private individuals with capital to invest in business enterprises.
- Equity — Definition,
- Ownership in an asset.
- The value of a property minus outstanding mortgage debt and other liens.
- 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,
- Property designated as collateral.
- A document stating ownership of a stock or bond.
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- 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.
