What is ‘Seed Capital’?

What is ‘Seed Capital’?

Learning Nikita Fernandes
  The initial capital used while starting a business is known as Seed Capital. It often comes from the founders’ personal assets, from relatives or friends, and is used to cover up initial operating expenses to attract venture capitalists. Seed funding is often obtained in exchange of equity stakes in the enterprise. It is often seen as a risk by banks and venture capital investors and many might wait until the business is more established before making any larger investments.   A Breakdown of 'Seed Capital'     The stages involved in financial startups is seed capital, venture capital, mezzanine funding and an initial public offering. Seed Capital is usually provided for market research, prototype production, product development, or any other early stage operations.   Factors that help determine how…
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