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Seed money is the earliest financial support a new project receives, often arriving at a point when an idea exists but nothing concrete has been built yet. This first backing helps a venture take its initial steps and gives people working on it enough stability to continue developing their work. An investor puts capital in a startup company in exchange for an equity stake or convertible note stake in the company. The term seed suggests that this is a very early investment, meant to support the business until it can generate cash of its own, or until it is ready for further investments. Seed money options include friends and family funding, seed venture capital funds, angel funding, and crowdfunding. Seed money can come from informal contributions, early‑stage investment instruments such as SAFEs or convertible notes, accelerator programs, and public or community funding initiatives. Seed funding is also shaped by accelerators and policy initiatives that influence how new ventures find backing in their earliest stages.
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