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GLOSSARY

Seed funding

Seed funding is the initial capital raised by a startup to validate its idea, develop a prototype, and conduct early market research.


What is Seed Funding?

Seed funding is the first round of funding for startups, typically used to prove the concept and get the business off the ground.

Why Seed Funding Matters

Seed funding provides the necessary resources for startups to build a prototype, test the market, and attract further investment.

Examples of Seed Funding

  • Y Combinator offers seed funding and mentorship to early-stage startups.
  • Angel investors like Peter Thiel and Reid Hoffman often provide seed funding to promising ventures.

Related Concepts

Series A Funding: Follows seed funding and involves scaling the business with more substantial investment.

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