PRE-SEED FUNDING-
This is the earliest stage of equity funding. This stage occurs before the minimal viable product (MVP) has been developed as the funds are required to bring business ideas for conducting market research. These funds are usually obtained from business founder’s savings, family or friends through investment from angel investors.
SEED FUNDING-
The funding done at the nascent stage is called seed funding and the capital is known as a seed capital. Technically seed capital is referred as the initial capital which is used at the time of starting the business. Seed funding allows the examination of the business idea and then converting it into a viable product or service which further attracts venture capitalists. The business founder must be clear about how to utilize this fund in most optimum manner to ensure that there is smooth transition in advanced stage of business. Seed funding is a risky investment option, as not all funding agencies are risk adverse and chose to wait and watch approach to see whether the idea of business is potential. The paper work and legal procedure are less as compared to others and even they have low interest rates. more