Seed money is used to fund the earliest stages of a new business, potentially up to the point of launching your product.
Seed funding is the first official equity funding stage. It typically represents the first official money that a business venture or enterprise raises; some companies never extend beyond seed funding into Series A rounds or beyond. Seed funding is used to take a startup from idea to the first steps, such as product development or market research.
Seed funding may be raised from family and friends, angel investors, incubators, and venture capital firms that focus on early-stage startups. Angel investors are perhaps the most common type of investor at this stage.
Series A funding, (also known as Series A financing or Series A investment) means the first venture capital funding for a startup. The Series A funding round follows a startup company’s seed round and precedes the Series B Funding round.