Definition

Noun: - Initial capital for a new venture: Money used to fund the beginning stages of a new business, project, or enterprise. It covers early expenses such as market research, product development, and initial operating costs to help the idea grow.

Usage

"Seed money" is used to describe the first, often relatively small, amount of financial investment required to start a business and prove its concept. It is typically provided by the founders, friends, family, or angel investors.

Examples

• The entrepreneur used his savings as seed money to build a prototype.
• They are seeking seed money to turn their software idea into a company.
• The grant provided the crucial seed money needed for the community project.

Advanced Usage

• "to secure seed money": To successfully obtain the initial funding.
  • The startup secured seed money from a local investor group.
• "seed money round": Refers to the specific phase of financing where initial capital is raised.
  • The company is currently closing its seed money round.

Variants and Related Words

• Seed funding (n): A synonym often used interchangeably with "seed money."
• Seed capital (n): Another common synonym emphasizing the capital investment aspect.
• Angel investment (n): A source of seed money provided by affluent individuals.

Synonyms

• Startup capital: Capital used to start a business.
• Initial funding: The first round of financial support.
• Venture capital (early-stage): Although venture capital often comes later, early-stage VC can serve as seed money.

Related Phrases

• Bootstrapping (n): The practice of starting a business with little capital, often without external seed money.
• Proof of concept (n): A demonstration that an idea is feasible, often a goal achieved using seed money.

Noun

1. capital needed to set up a new business or enterprise