Seed Capital

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Definition of 'Seed Capital'

Seed capital is the initial capital provided to a startup company by its founders or angel investors. It is used to cover the costs of research and development, marketing, and other expenses related to starting a new business.

Seed capital is typically provided in the form of equity, which means that the investor receives a share of the company in exchange for their investment. The amount of seed capital that a startup company needs will vary depending on its size and industry. However, most startups require at least $50,000 in seed capital to get started.

There are a number of different ways to raise seed capital. One option is to approach angel investors, who are individuals who invest in early-stage companies. Another option is to participate in a startup incubator or accelerator program, which provides startups with mentorship, education, and access to capital.

Once a startup company has raised seed capital, it can use the funds to develop its product or service, hire employees, and market its business. Seed capital is an important part of the startup process, as it helps companies get off the ground and reach the next stage of growth.

Here are some additional details about seed capital:

* Seed capital is typically provided by angel investors or venture capitalists.
* The amount of seed capital that a startup company needs will vary depending on its size and industry.
* Seed capital is used to cover the costs of research and development, marketing, and other expenses related to starting a new business.
* Seed capital is an important part of the startup process, as it helps companies get off the ground and reach the next stage of growth.

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