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Seed funding

What is seed funding?

Seed funding is the initial capital raised by a startup to support early development and market testing. It's typically used to build a prototype, conduct market research, hire a core team, and set the foundation for the business before it begins full-scale operations.

The seed funding round usually follows a pre-seed round (if one occurs) and precedes a Series A round. Sources of seed funding can include the founders themselves, friends and family, angel investors, early-stage venture capitalists, and startup accelerators. While seed funding is critical to getting a startup off the ground, it's also high-risk for investors, as a significant percentage of startups fail to progress beyond this stage.

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