Definition of Seed Money

Seed Money is the first round of investment capital for a start-up business.
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Seed money provides startup companies with the money they need to fuel their initial development and growth. The investment can be in the form of a loan, an investment in preferred stock or convertible bonds, or an investment in common stock.

Angel investors and early-stage venture capital funds often are involved in seed stage funding rounds.

If you are a very wealthy individual, you should make a few seed stage investments each year. Without seed money, talented entrepreneurs will never get out the gates and great ideas will languish.

Unfunded entrepreneurs are probably the biggest waste of human potential in the history of mankind, and you need to do your part to give back. In addition to simply doing the right thing, you'll probably make a nice return on the investment as well.

Seed Money References On This Site

These Gaebler.com articles mention this glossary term:

• Interview with GigMaven Founder Howard Han - I initially put my own savings into GigMaven and then in July we raised a seed round from angel investors...
• Interview with Future Delivery Founder Jun Laoyza - Hopefully in the coming month our leads will go through and we'll have our first round of seed funding...
• Interview with Furniture Entrepreneur Lauren Russell - Our first large order and the deposit check for $18,000 that came with it served as the initial seed money. From there we leveraged the equity in our home...
• Venture Capital Funds for Social Enterprises - It provides seed funding to these individuals or partnerships in the form of...
• Interview with Bombilla & Gourd, Inc Co-founder Noah Krinick - The original seed money came from the three founders. Shortly after the concept...
• Entrepreneurship and Denmark - There is also the ‘Seed Capital Denmark’ fund, a public-private fund that invests in firms at their seed stage (the initial stage of the venture...
• Buying Used Computers - One great way to leverage your seed money to make it go farther is to buy used...
• Interview with Chicago Entrepreneur Alex White - We all received an investment from Illinois Ventures through their iVentures10 program which gives seed funding to young college teams...
• Interview with Tatango Founder Derek Johnson - It took us about a month, doing over 20 presentations in my basement to raise our initial seed money...
• Interview with Tatango Founder Derek Johnson - It took us about a month, doing over 20 presentations in my basement to raise our initial seed money...
• Interview with Future Delivery Founder Jun Laoyza - Hopefully in the coming month our leads will go through and we'll have our first round of seed funding...
• Interview with Furniture Entrepreneur Lauren Russell - Our first large order and the deposit check for $18,000 that came with it served as the initial seed money. From there we leveraged the equity in our home...
• Interview with Chicago Entrepreneur Alex White - We all received an investment from Illinois Ventures through their iVentures10 program which gives seed funding to young college teams...
• Venture Capital Funds for Social Enterprises - It provides seed funding to these individuals or partnerships in the form of...
• Entrepreneurship and Denmark - There is also the ‘Seed Capital Denmark’ fund, a public-private fund that invests in firms at their seed stage (the initial stage of the venture...
• Buying Used Computers - One great way to leverage your seed money to make it go farther is to buy used...
• Interview with GigMaven Founder Howard Han - I initially put my own savings into GigMaven and then in July we raised a seed round from angel investors...
• Interview with Bombilla & Gourd, Inc Co-founder Noah Krinick - The original seed money came from the three founders. Shortly after the concept...