Seed Funding
The seed stage marks your startup's first major growth step. It turns a validated idea into a market-ready product with a clear path to traction.
Back to Stage HubsWhat Is Seed Funding?
Seed funding is the first significant external capital a startup raises after proving its concept or MVP. It helps founders move from validation to growth by improving the product, hiring key talent, and launching into the market.
Who Provides Seed Funding?
Typical sources include:
- Angel investors and angel networks
- Early-stage venture capital firms
- Startup accelerators and incubators
- Corporate venture funds
- Government or ecosystem grants
Investors expect early signs of traction, a functioning MVP, and a clear go-to-market plan.
How Much Is Seed Funding?
Typical ranges include:
- INR 1 crore to INR 7 crores in India
- USD 500K to USD 2M globally
What Investors Look For
- A strong and complementary founding team
- Validated MVP or early market adoption
- Clear go-to-market and growth strategy
- Defined unit economics and acquisition plan
- Scalable business model with market opportunity
- Strong storytelling and investor readiness
How to Use Seed Funding Wisely
- Expand product capabilities and user experience
- Hire for sales, marketing, and tech leadership
- Run pilot projects and marketing campaigns
- Improve onboarding and feedback loops
- Build brand visibility and partnerships
- Prepare for Series A readiness
Challenges in Raising Seed Funding
- Limited traction or early revenue
- Inconsistent storytelling or weak outreach
- Underestimated financial projections
- Over-dilution too early
Next Step: Series A
Once traction and scalable economics are in place, Series A helps expand, monetize, and establish market leadership.
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