the.com/seed money

The cash that bets your napkin sketch is actually a company.

means The initial capital that funds a new venture before it has proven itself, allowing it to start operating and grow.

from A straightforward 20th-century metaphor from agriculture: just as a farmer sets aside a portion of grain not to eat but to plant, so early investors set aside cash not to spend but to plant in a fledgling business. The phrase took root in American business speech as venture financing itself became a named practice, with 'seed' later splitting into a whole vocabulary — seed round, seed investor, pre-seed — tracking the plant from germination onward.

typical source
founders, friends, family, or angels
trade-off
small check, often big ownership stake
purpose
prove the idea before real investors show up
risk level
closest round to total loss
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