In context of private equity, the state of a company when it has just been incorporated and its founders are developing their product or service.
“Inc.” magazine defines seed funding as the earliest round of capital for a startup company. FundingSavvy, a funding resource website, defines early-stage funding as a startup company’s first round of substantial funding. Early-stage funding usually consists of two parts, commonly known as Series A and Series B financing. Seed funding allows a startup to develop a prototype product and generate sufficient investor interest for successive financing rounds. Early-stage funding allows additional operational flexibility over the medium to long term.
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