What is a Seed Financing?

Startups will often go through several rounds of financing before they are able to generate enough revenue to finance their operations. The earliest funding round, the seed stage, is a critical period when money is needed to develop the business and prove the new product or service works before it is sold to consumers. In recent years, we have seen the emergence of “open source” term sheets and related equity seed investment documents that are designed to make a startup's first financing as fast and efficient as possible. Read more.