Seed Funding

Seed funding is the first round of fundraising for a startup. This type of funding usually happens at the very beginning of a company, when it is still at the idea or prototype stage. The goal of seed funding is to provide the necessary capital to develop a minimum viable product (MVP), test the idea on the market, and prepare the company for the next stage, such as a Series A round.

How does seed funding work?

Seed funding is often obtained from individual investors (business angels), seed funds, or sometimes even friends and family of the founders. In exchange for their investment, these early supporters receive shares in the company. The amount of seed funding can vary, but it is generally modest compared to later funding rounds.

Concrete example

Imagine a startup developing a new project management platform for freelancers. The founders have a solid idea, but they need €200,000 to create a functional prototype and start attracting users. They raise seed funding from a business angel in exchange for 15% of the company's shares. This funding allows them to develop the product and start testing it on the market.

Why is seed funding important?

Seed funding allows startups to get through the critical first stages of their development without having to generate immediate revenue. It's an essential step for many companies, as it allows them to prove their concept before raising larger amounts. Without seed funding, it's often difficult for a startup to grow and attract investors.

Looking for seed funding for your startup?

If you want to raise seed funding to launch your project, contact us via the contact form on our website. We can help you structure your fundraising and maximize your chances of success.