Seed Capital/Seed Funding

Seed Capital/Seed Funding defined: Seed capital (also known as seed funding) is the initial capital used to start a business. Seed capital usually comes from the founder’s personal assets or investments by friends and family, but can also come from outside angel investors. Since the venture is usually in the conceptual stage, seed capital is used to sponsor research and development and cover basic expenses until the product or services can begin generating revenue.

Above is a definition for “Seed Capital/Seed Funding” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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