Receiving free money from governments or organizations to help your business grow. These funds don’t need to be repaid and can ease early financial pressure.
What to consider
Be ready to give up some equity.
Plan for subsequent funding rounds.
Use funds strategically to reach key milestones.
Real world scenarios
A startup in San Francisco raises seed money from angel investors to develop its prototype.
An entrepreneur secures seed funding through a pitch competition.
A small business obtains seed capital to hire its first employees.