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A seed round is the initial round of capital raised by a startup from external investors, designed to support the early development stages of the company. It's typically used to refine the product, hire key team members, conduct market research, and prepare for the next stages of growth.
During a seed round, investments can come from a variety of sources, including friends and family, angel investors, early-stage venture capital firms, and startup accelerators. Investors in a seed round typically receive equity in the company in exchange for their investment. This is a crucial stage for startups as it sets the stage for subsequent fundraising rounds and further growth and development of the company.
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