Seed Funding
Also known as: Pre-Seed, Seed Round, Angel Investment
Early-stage equity investment used to fund initial product development, team building, and early validation.
Full Definition
Seed funding typically ranges from $500K to $3M for healthcare innovators and is used to fund pre-clinical or early clinical validation, regulatory preparation, and initial team formation. Seed investors in healthcare include angel investors, family offices, seed-stage venture funds, and university technology transfer offices. Seed rounds are characterized by high uncertainty and high dilution — investors typically receive 15–30% equity for their investment.
Example
A surgical device startup raises a $1.5M seed round from two angel investors and a university seed fund to complete their animal study, file their 510(k), and hire a VP of Clinical Affairs.