{"id":12827,"date":"2022-10-17T16:29:24","date_gmt":"2022-10-17T16:29:24","guid":{"rendered":"https:\/\/bitsacard.com\/blog\/what-is-seed-capital-finance-your-business\/"},"modified":"2022-10-17T16:29:24","modified_gmt":"2022-10-17T16:29:24","slug":"what-is-seed-capital-finance-your-business","status":"publish","type":"post","link":"https:\/\/bitsacard.com\/blog\/en\/what-is-seed-capital-finance-your-business","title":{"rendered":"What is seed capital? Finance your business!"},"content":{"rendered":"

Probably, more than once we have found ourselves thinking about an interesting business idea that we want to put into action. <\/span><\/p>\n

However, we are discouraged by the reality that if we don’t have enough money to produce<\/strong> our prototype product or service, we can’t get started. <\/span><\/p>\n

Likewise, you may think that a bank loan is the solution. However, their financial interests and requirements may discourage you. <\/span><\/p>\n

But what if I told you that there is a way you can start<\/strong> your business model without demonstrating an amazing sales track record?<\/span><\/p>\n

Let’s see what seed capital is all about, a start-up financing option<\/strong> that gives you great benefits without so much risk. <\/span><\/p>\n

 <\/p>\n

What is seed capital?<\/h2>\n

 <\/p>\n

Seed capital, also called seed financing, is a type of financing for new initiatives<\/strong> in which, in exchange for a part of the business, an investor provides you with the money you need.<\/strong> <\/span><\/p>\n

Consequently, it is an early investment that focuses on supporting the creation of a company<\/strong> because of the history of its creators or its potential growth opportunity. <\/span><\/p>\n

This is, of course, the opposite of a venture capital fund<\/strong>, in which a smaller number of companies are backed by looking at their ability to generate an adequate turnover of income and expenses (cash flow). <\/span><\/p>\n

 <\/p>\n

\"What<\/p>\n

 <\/p>\n

What is it usually used for?<\/h3>\n

 <\/p>\n

According to the business activity of the company, seed capital can be invested for:<\/strong><\/span><\/p>\n