Seed funding is the initial capital raised by a startup to develop its business idea. This funding typically comes from personal savings, family, friends, or angel investors. It helps entrepreneurs cover early expenses such as product development, market research, and operational costs. The goal of seed funding is to support the startup until it can generate revenue or attract larger investments, such as venture capital. This early-stage financing is crucial for turning innovative ideas into viable businesses, allowing entrepreneurs to test their concepts and build a foundation for future growth.