Funding and ownership
Seed
The first proper round, raised once there's a product and some early users or revenue. It comes from angels and seed-stage funds, and pays for the search for product-market fit.
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You'll hear it as
We closed the seed round, so we can hire our first engineers.
Why it matters to you.
The money buys time to prove people want the product. Expect first hires, first processes and options as part of the package, with plenty of risk still in it.
Also called Seed round.
Related terms.
Videos.
Mentioned in 1 video, plus more on Business & startups.