Practical Law Glossary Item 8-568-1466 (Approx. 3 pages)
Glossary
Seed Financing Round
Also sometimes referred to as a friends and family round, an early round of financing for a startup company, typically conducted not long after the company is formed. Startups may raise debt and equity capital in multiple rounds of seed financing before they successfully complete a Series A financing led by an institutional venture capital (VC) fund.
Seed round structures are intended to enable a company to raise equity or debt capital with reduced transaction costs (such as lower legal fees) and a shorter time-to-close, compared to a traditional VC financing round.