Seed capital, also known as seed funding or seed money, is the initial investment used to start a business or project. It typically comes from the founders' personal assets, family, friends, [[angel capital|angel investors]], or [[crowdfunding]] and is used to cover early-stage expenses such as market research, product development, and initial marketing efforts. Seed capital is important for transforming an idea into a viable business model and often precedes larger rounds for [[growth capital]]. In contrast, [[operating capital]] refers to the funds needed for the day-to-day running of a business once it is established.