seed money: meaning, definition, pronunciation and examples
C1Formal, Business, Financial
Quick answer
What does “seed money” mean?
An initial amount of capital used to start a new business or project.
Audio
Pronunciation
Definition
Meaning and Definition
An initial amount of capital used to start a new business or project.
Funding provided to cover early-stage costs, often to prove a concept before seeking larger investment. Can also refer metaphorically to any initial resource that enables growth.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences. The term is used identically in both varieties.
Connotations
Identical connotations of initial investment and potential for growth.
Frequency
Slightly more frequent in American business/financial discourse, but common in both.
Grammar
How to Use “seed money” in a Sentence
[Investor/Entity] provides seed money for [Project/Startup][Startup] raises seed money from [Source]Seed money is used to [Verb Phrase]Vocabulary
Collocations
Examples
Examples of “seed money” in a Sentence
verb
British English
- The project was seed-moneyed by a local angel investor.
- They need to seed-money the venture properly.
American English
- The project was seed-funded by a local angel investor.
- They need to seed fund the venture properly.
adjective
British English
- They are in the seed-money phase of development.
- A seed-money round is being planned.
American English
- They are in the seed-funding phase of development.
- A seed round is being planned.
Usage
Meaning in Context
Business
The startup secured £50,000 in seed money to develop its prototype.
Academic
The research paper analyses the correlation between seed money availability and entrepreneurial success rates.
Everyday
They used their savings as seed money to open the café.
Technical
The pre-seed and seed money rounds typically involve convertible notes or SAFE agreements.
Vocabulary
Synonyms of “seed money”
Strong
Neutral
Weak
Vocabulary
Antonyms of “seed money”
Watch out
Common Mistakes When Using “seed money”
- Using 'seed money' to refer to any small loan or personal savings without the connotation of starting/growing a venture.
- Confusing it with 'venture capital', which typically comes later and is larger in scale.
FAQ
Frequently Asked Questions
Not exactly. While it is capital, seed money is often an equity investment (investors get ownership) or a grant, not a traditional loan that must be repaid with interest.
Seed money commonly comes from the founders' personal savings, friends and family, angel investors, or early-stage venture capital funds.
Typically, Series A, B, C etc., funding rounds follow, which involve larger amounts of capital from venture capital firms to scale the business.
Metaphorically, yes (e.g., 'seed money for a community garden'). However, its primary and standard use is in business and finance.
An initial amount of capital used to start a new business or project.
Seed money is usually formal, business, financial in register.
Seed money: in British English it is pronounced /ˈsiːd ˌmʌni/, and in American English it is pronounced /ˈsiːd ˌmʌni/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Plant the seed (metaphorically related)”
Learning
Memory Aids
Mnemonic
Think of a SEED that needs MONEY for soil and water to grow into a plant. SEED MONEY is the financial 'soil' for a new business idea.
Conceptual Metaphor
BUSINESS IS A PLANT (The initial investment is the seed from which the company grows).
Practice
Quiz
What is the primary purpose of seed money?