Seed Round Funding

Simply put, the seed funding startups receive refers to the funds specifically to get the business up and running; think of it as a baby taking its first few steps. 

Like pre-seed funding, seed round financing is usually sourced from family, friends, venture capitalists, or angel investors. However, it’s crucial to distinguish pre-seed funding from seed funding. 

• Pre-seed funding: Helps cover initial costs and help with minimum product development.
• Seed funding: Received after pre-seed financing, used to scale the startup and its operations.

Though the amount varies, the average seed round size for startups in the UK ranges between £500,000 to £2,000,000. The primary purpose is to convert the idea into a reality by providing the funds needed to develop products/services, hire key staff, build a customer base, widen market reach, and build trust and rapport between the startup and the investors. 

Once you have a solid and investor-exciting idea, large market potential, a solid financial plan, and a strong belief in your team’s execution ability, you know it’s time to deliver that pitch. It’s all in the details, including the story behind why you started this company in the first place. Do it right, and investors will show genuine interest.