Seed money/capital/funding is a form of securities offering in which an investor invests capital in a startup company in exchange for an equity stake. It is based on equity funding; when investors invest money into a business at its early stage and are given an equity stake in exchange for the investment. Seed funding is usually required because of the limited capital and access to funding that many startups encounter. This prompts owner of businesses to seek ways to generate funds to start up their businesses. Funding for startups usually comes from the owner's savings or the input of support from family and friends but hardly is this ever enough, especially for ambitious individuals. Look up these traits that make a successful entrepreneur. https://smartsmssolutions.com/blog/120-sms-marketing/personal-development/1724-10-of-the-best-entrepreneurial-traits-that-leads-to-success

Advantages of seed funding.

1. It helps project developers to have access to support and seed capital finance from mainstream investors.

2. Seed funding is a great way to make up for insufficient funds.

3. With seed funding you get to have funds even before the business has started making a profit.

How to raise seed funds

• Decide on the source and thoroughly research the investor. Ensure they have an interest in businesses in your niche. Get to understand the pros and cons of settling for the said investor. Review the investors' business model and financial ability as well as their potential to help you attain success. To do this you need to understand your business first.

• Prepare a pitch or a presentation. It should be captivating enough to arouse the interest of your investors. Your pitch is what convinces potential investors to fund your business or otherwise. This simply means that extra care should be given to that pitch. Prepare slides, background materials and other tools that would help make a convincing pitch and be prepared to share these during your presentation.

• Your pitch or presentation should contain all the relevant details that investors would be interested in to enable them to get a holistic view of what they would be investing in. You should also be ready to counter possible objections to your request. Follow these tips as you prepare your pitch. https://piktochart.com/blog/business-pitch/

How to tell a business is ready for seed funding.

They are 2 basic ways to determine this fact:

• Financial stability: The company should have attained a reasonable level of stability when it comes to its finances. The fluctuations that come with new businesses should have reduced significantly before a company begins to seek seed funding.

• Ability to generate revenue: if a company finds it difficult to generate revenue, then it is not yet ready for seed funding.

Types of seed funding.

• Crowdfunding: find out all there is to know about crowdfunding. https://smartsmssolutions.com/blog/83-updates/1733-10-best-crowdfunding-tips-for-a-start-up

• Corporate seed funding: this is a newer form of seed funding where large organizations that are seeking new streams of income partner with startups. They usually reach out to venture capitalists to give out funds to companies that look promising.

• Incubators: a startup incubator is a program put in place to help startups achieve success and solve some common problems encountered by startups such as funding mentorship and training.

• Accelerators: accelerators focus on helping new firms scale up by providing training mentorship and networking opportunities in return for equity. Signing an accelerator agreement usually involves giving up between 5% to 10% of your company's equity.

• Angel investors: angel investors are individuals who put funds into a start-up in exchange for equity ownership or convertible debts. They are a great resource for any startup full-stop angel investors are usually professionals and have a good understanding of the risks associated with investing in a start-up.

• Debt funding: this funding is perhaps the most common way through which entrepreneurs raise funds for their startups. This funding involves money collected on the condition of repayment such as bank loans, borrowed money from family and friends and loans from venture capitalists in place of equity investments. Here's a list of where you can get low-interest loans. https://smartsmssolutions.com/blog/83-updates/1727-where-to-get-low-interest-loans-for-your-business-startup-in-nigeria

• Venture capitalists: venture capitalist market conditions vision and the company's growth potential into consideration before funding.

Research the different types of seed funding that are available to people or businesses in your niche and then decide which one you would like to go for.

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