Basics Of Seed Funding In India

If we delve into the statistics and business climate of India during the past few years, there is no doubt that the country has been riding an entrepreneurial wave. Indian start-ups have raised over USD 42 billion in funding capital over the past year, making India the third-largest start-up ecosystem in the world¹. Despite these recent developments, competition from other start-ups poses a difficult challenge for entrepreneurs in the preliminary stages of funding – in particular, seed funding.

What Is Seed Funding?

Seed funding is the preliminary stage of funding when the business is primarily a concept with the potential to grow. This stage is mainly about acquiring capital for product development and expansion – which helps in lifting things off the ground so that the business has a running start in its operations before earning the revenue to sustain itself.