What is Seed Funding?
Nexa Consultancy | Startup & Finance Glossary
Seed funding is the first official equity funding stage. It typically follows a pre-seed or angel round and is the first money a startup raises from institutional investors (Venture Capital funds).
For Startups: The goal of a seed round is to achieve product-market fit and build out the initial team. The amount raised is typically designed to provide 18-24 months of runway.
Fundraising: To raise a seed round, a startup usually needs to show early traction in the form of a working product, initial customers, and some revenue. The process involves creating a pitch deck, building a financial model, and pitching to a curated list of seed-stage VCs.
Example: A startup raises a ₹15 Crore seed round to hire its first 10 employees and acquire its first 1,000 paying customers.