Seed Funding 

Seed Funding is a formal fundraising round where a startup raises external capital to fund early product development, market research, hiring, and go-to-market efforts. Unlike seed capital, which may come from informal sources, seed funding typically involves structured investment from: 

• Angel investors 

• Seed venture capital funds 

• Early-stage accelerators or incubators 

In exchange for capital, investors usually receive preferred stock or convertible instruments (like SAFEs or convertible notes) that convert into equity in future rounds.