Seed Funding

Seed Funding is money provided to early stage business concepts which are, in funding terms, post-friends and family but pre-angel funding, in terms of their investment readiness.

Investors are likely to make their decision whether to fund a project based on the perceived strength of the idea and the capabilities, skills and past history of the founders.

Seed funding involves a higher risk for the funder as the business idea is still in its early stages. As such, the amount of money provided is lower than other forms of capital, such as Angel (in New Zealand it is around $100k - $150k).

Seed Funding is typically used for market validation and market research. Activities that will help validate that the business concept will be commercially successful.

There are two Seed funds currently in operation in New Zealand: the Creative HQ POC (proof of concept) Fund and the Icehouse Seed Fund.