What is Seed Funding?

Seed funding, sometimes called seed capital, is a form of funding where an investor invests in a startup in exchange for an equity stake, convertible note stake, or tokenized asset stake in the company. Seed funding is generally considered to be a very early investment to help support a startup until it gets off the ground and starts generating cash flow, or is in a position to obtain further investment capital. Seed funding is often completed by friends and family, seed venture capital (VC) funds, and angel investors, among other funders.