A Seed Round is an early stage of funding for a startup, where entrepreneurs seek initial capital to develop their business idea. This funding typically comes from individual investors, friends, family, or angel investors, and is used to cover initial expenses like product development, market research, and operational costs.
During a Seed Round, investors provide financial support in exchange for equity or convertible notes, which can later convert into shares. This stage is crucial for startups, as it helps them validate their concept and prepare for future funding rounds, such as the Series A round.