Seed stage investment for the startup company is the first money that is funded to the business as security for future development. It is the amount of money that is being invested by the stakeholders to get the future benefit. The main thing needed for this early stage is the legal status , resources, and manpower. There are many benefits of the seed investment. It is like a tree that in the start you give water and other nutrients and when it sprouts it gives more flowers and fruits, in the same way, all the companies grow their business through seed investment. It is the money that shows the interest and confidence of those people who have trusted you for their future development and this benefit achieved is called a capital seed.
Why seed investment?
There are many benefits of the seed investment, some of the utmost advantages are discussed here:
1. Can find trustworthy stakeholders: seed investment gives this opportunity to know that who is trusting you and investing money in your company. So by the seed investment, trustworthy stakeholders can be found who can share their money.
2. It grows your company: by the funding of the stakeholders, the new company can be successful and can grow fatly. The more people would invest in the company and the shares of the company would grow also. The growth would not only be beneficial for the company but all stakeholders.
3. Business can be expanded: the seed investment is very important for spreading the business at a large scale in an efficient way. The networking of the business can be carried by a large share of seed investment by the trustworthy stakeholders.
4. Enhance financial backing: at the start of the company, the financial support can be got by seed investment. That will overcome any financial issues. mostly the seed investment is done by the friends or those people who know you very well and invest their money.
Types of seed investment: these are main types of seed investment:
1. Crowdfunding: it provides an open platform for any stakeholder to invest its share in the company. The main site of this kind of seed investment is that so many can be connected and more profit can be earned.
2. Corporate seed funding: the biggest companies like google, amazon, and Facebook provide this platform that many corporate invest their money.
3. Angle investors: :these are the ones that invest their money at the start of the company.
Importance of seed investment: seed investment is the major source to start a new business or company with the funding of stakeholders that invest for future profit. This also offers a wide range to invest money for a long time and that will be ensured that the startup would grow by the funding of the investors. The seed investment has provided a way that anyone with innovative business ideas and planning can make their businesses successful and progressive.