SA Crowdfunding Blog

Wednesday, 23 May 2012 22:34

New Seed Funding Solution in South Africa

Seed funding is another term to denote angel funding or angel investing, which is a process of collecting capital in which more than one person invests the necessary funds to start the business and to sustain itself for a certain period. This method of funding can be useful for startup companies that are promising, but fail to attain the necessary capital in traditional ways.

It must be noted that while seed funding may seem to be the same as startup capital, both terms are different. Seed funding is generally provided to help a particular business in the development of an idea or the creation or marketing the first product. Entrepreneurs usually go for seed funding when their company is less than or around a year old, and if they have not yet created a service or product for generating revenue. In fact, most companies that go for seed funding are so young that they do not have their top management formed yet or have only recently assembled their top management team.

Published in SA Crowd Funding Blog

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