seed capital

USAGE SUMMARY

"seed capital" is correct and frequently used in written English.
It refers to the initial capital or funding that is provided to start a new business or venture. It can also be called "startup capital" or "seed money." Example: The entrepreneur was able to launch her successful tech startup thanks to the generous seed capital provided by investors.

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

57 human-written examples

After successfully raising seed capital, they pursued a larger fundraise.

The Guardian

FINANCIAL TIMES Orix Gives Seed Capital to New P.E.

The New York Times

It has provided seed capital for Yahoo, E*Trade and Buy.com, among others.

The New York Times

Some new firms have turned to specialist providers of seed capital.

The New York Times

Page and Brin sought seed capital instead; the rest is Google history.

The Guardian - Tech

He said he would provide the $1 million seed capital needed to get the idea moving.

The New York Times

The company obtained $2 million in seed capital, then investor money dried up.

The New York Times

When you get your seed capital, spend it all, instantly, on chocolate.

The Guardian - Books

Human-verified similar examples from authoritative sources

Similar Expressions

3 human-written examples

SEED Capital is Denmark's largest venture capital fund.

TechCrunch

He is also the chairman of the Seed Capital Development Fund, a nonprofit foundation in Manhattan.

The New York Times

Prior to Atlas, Jeff was a partner with Seed Capital.

TechCrunch

Expert writing Tips

Best practice

When discussing the financial aspects of a startup, be precise about the stage of funding. Use "seed capital" specifically to refer to the initial investment round that helps a company begin operations and develop its product or service.

Common error

Avoid using "seed capital" to describe larger, later-stage funding rounds like Series A or Series B. These rounds involve significantly more capital and different investment terms than seed funding, and should be referred to as "venture capital" or "growth equity" instead.

Linguistic Context

The phrase "seed capital" functions primarily as a noun phrase, typically used as a subject or object in sentences concerning business and finance. Ludwig AI indicates its function is to represent the initial financial resources.

Expression frequency: Very common

Frequent in

News & Media

53%

Science

31%

Formal & Business

16%

Less common in

Wiki

6%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "seed capital" is a very common and grammatically correct term referring to the initial funding for a startup. As Ludwig AI indicates, it's widely used in business, news, and academic contexts to describe this specific phase of funding. When using the term, it's important to differentiate it from later-stage venture capital and other forms of financial support like grants. Alternatives such as "startup funding" or "initial investment" may be appropriate depending on the specific context, but "seed capital" is a well-established and recognized term in the business world.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

startup funding

Replaces 'seed' with 'startup' emphasizing the early stage of the company.

initial investment

Focuses on the act of investing at the beginning of a venture.

early-stage funding

Highlights the timeline and type of funding.

venture capital seed round

Specifies the type of investment round and ties it to venture capital.

foundation capital

Emphasizes that it's the foundation for the company's capital.

pre-seed funding

Highlights funding that occurs before the seed stage.

bootstrapping funds

Refers to self-funded capital, often from personal savings.

angel investment

Highlights an investment from an individual investor, usually in return for equity.

start-up resources

Broadens the scope to include non-monetary resources needed at the start.

launch capital

Focuses on capital used specifically for launching a new company or product.

FAQs

How is "seed capital" typically used in a sentence?

"Seed capital" is used to describe the initial funding a startup receives. For example, "The company raised $500,000 in "seed capital" to develop its prototype."

What are some synonyms for "seed capital"?

Alternatives to "seed capital" include "startup funding", "initial investment", and "early-stage funding", each carrying slightly different nuances.

What's the difference between "seed capital" and "venture capital"?

"Seed capital" is the initial funding for a startup, while "venture capital" refers to larger investments in more established startups or businesses with high growth potential. Venture capital rounds, such as Series A or B, typically occur after the "seed capital" stage.

Is "seed capital" the same as a "grant"?

No, "seed capital" usually involves an exchange of equity or a loan that needs to be repaid, while a "grant" is typically a non-repayable sum awarded to a business or individual. "Seed capital" is often provided by investors, whereas grants come from government entities or non-profit organizations.