Seed Capital - Launchopedia

Seed Capital is the money used to purchase equity-based interest in a new or existing company. This seed capital is usually quite small because the venture is still in the idea or conceptual stage.⁵

Exercise Price

Exit

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Definitioner

Venture

Venture is often used for referring to a risky start-up or enterprise company.⁵

Seed Capital (Seed Money)

The initial round of capital for start-up companies, typically provided by angel investors through preferred stock or convertible bond type instruments.⁶

Seed Capital

Equity

Ownership in the capital of a Company. In corporations, it is called “stock”; in limited partnerships or LLCs, it is called “interests” or “units.”³
This designation is given to a stockholder’s ownership in a company. The amount of ownership is obtained when an individual or corporation purchases one or more shares of stock (equity shares). The more equity purchased, the greater the ownership.⁴

Capital

Financial capital is a term that can refer to the money exchanged between entrepreneurs and investors during a business deal. Entrepreneurs need to raise capital for their startups while investors can provide them with the needed capital (or funding). Financial capital usually comes with interest, and new business owners can use their financial capital in purchasing real capital (or machinery or equipment) for their new business.⁴

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INFOGRAPHICS

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