What is Seed Capital?

Answer:
Seed capital refers to the initial investment

of money used to start a new business venture. These types of funds are usually earmarked for expenses related the very early stages of startup operations. Seed capital typically pays for market research, feasibility studies, preliminary product development, and related expenses.

Business owners often provide seed capital for their own new business ventures from their personal savings. Entrepreneurs often borrow seed capital via home equity or personal loans, or from family members or friends. In some cases, angel investors or professional venture investors provide infusions of seed capital in the form of equity or debt funding.