A seed round turns an idea into a working product and finds the first real customers. It usually comes before steady, predictable revenue. Investors still bet largely on the team and the size of the problem, but expect early traction.
Where in the journey
Early product, first customers.
What the money is for
Build the product, get to product-market fit, prove early demand.
Common investors
Seed funds, angels, micro-VCs.
Watch out for
Product-market fit is unproven; most seed companies never raise a Series A.