seed capital

Popular Terms
Comparatively small amount of capital contributed in the very beginning by a firm's founder(s). It is rarely provided by lenders or institutional investors because startup is the riskiest stage in a firm's life cycle with the highest chance of failure. Also called front end money, front money, or startup capital.

Use 'seed capital' in a Sentence

The seed capital was generated and the project was being executed at this point, we worked tirelessly to complete the project.
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The initial investors providing seed capital to our organization have experienced a significantly greater return on investment versus those providing capital in later years.
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The inventor had a great idea but no money. He went to a bank to request a loan for seed capital to start his business.
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