Seed capital is the initial amount of money an entrepreneur uses to start a business. Often, this money comes from family, friends, early shareholders or angel investors.
For example, two co-founders use $80,000 in seed capital — $40,000 from personal savings and $40,000 from a family member — to build their app prototype, register the business, and run a beta test with 200 early users before approaching investors for a larger round.
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