Seed Funding

Seed Funding

Seed funding refers to the initial Capital used to start a business, typically provided by Angel Investors, Capital/">Venture Capitalists, or personal savings. This type of funding is crucial for developing a business idea into a viable product or service, often covering expenses such as product development, market research, and initial operating costs.

Examples

• Tech Startup: A software company may seek $500,000 in seed funding to develop its first application and conduct market tests.
• Biotech Firm: A biotech startup could raise $1 million to fund early-stage research and secure patents for its innovative drug.

Cases

• Airbnb: In its early days, Airbnb received seed funding from Y Combinator, which helped them refine their platform and scale operations.
• Uber: Uber’s seed round included investments from Angel Investors, allowing the company to expand its service beyond San Francisco.