Funding & Investment

Seed Funding

The first official equity funding stage, typically used to prove product-market fit.

Full Definition

Seed funding is the first official equity funding stage for a startup, typically ranging from $500,000 to $2 million. This capital is used to prove product-market fit, build an initial team, and develop the product to a point where it can attract larger Series A investment. Seed rounds are often led by angel investors, seed-stage VCs, or accelerators.

Examples

  • 1Y Combinator provides $500K in seed funding to accepted startups
  • 2Seed rounds typically value companies between $2M-$10M