Providing Startup Financing Solutions Since 2001

seed capital

Is Seed Capital Different From Startup Capital?

Another email came in over the weekend asking what the difference is between seed capital and startup capital.

To be honest, it’s a bit of a gray area where people tend to disagree over the definitions. Some claim that both terms point to the same stage of funding and are, therefore, interchangeable.

I prefer to make a distinction as follows:

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Are you raising startup and/or seed capital?

Only licensed broker/dealers are able to accept success-based compensation or commissions for arranging funding.

Consultants, finders or others attempting to raise capital cannot be compensated with commissions or other success-based compensation. This is a violation of Federal and State security laws.

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