Private Equity & VCBeginner

Seed Funding

The first formal money a start-up raises to build its product.

Detailed explanation

Usually from angel investors, accelerators or seed-stage VC funds, often through equity or convertible notes.

Why it matters

It turns an idea into a testable business.

Key points

  • Comes before Series A.
  • Small cheque sizes.
  • High failure rate.

Related terms

More in Private Equity & VC

Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.