Seed Capital

Seed Capital, Seed Funding or Seed Money is the first funding in a business meant to support the business until it can generate cash of its own. It can be own capital, funding from friends and family etc. The other sources include the incubators and accelerators, who might also bring in an anchor investor.

Generally, other than the entrepreneurs own funding, seed capital is invested on the basis of the belief that the idea of the particular business will work. The anchor investor invests the seed capital because they believe that the new business will succeed.