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