seed financing

The first financing that a start-up company receives from a venture capital firm or from an angel investor (a wealthy individual who provides capital to very small start-up companies or entrepreneurs). Usually the amount of funds are under $10 million. Seed financing typically goes to very young companies that have a product under development or an idea that they want to create, but are a long way away from having an actual product to sell and being able to earn revenues in the market. Also called first round or initial financing.