Infographic | Seed investing

12 December, 2023

Have you ever heard of the term “seed investing”? It’s like planting the seeds for the future giants of business. In the vast landscape of investment, early-stage start-ups are akin to fertile soil, and seed investors play the role of cultivators, sowing the seeds that have the potential to grow into thriving enterprises.

If you’re all about catching diamonds in the rust before someone does, this is for you. Today we’ll take you on a journey to understand the intricacies of seed, pre-seed and angel investing, and why it’s something that could up your game.

WHAT IS SEED
INVESTING?

Seed investing: Seed investing marks the first significant injection of capital into a promising startup. This stage is reached when the venture has moved beyond ideation, showcasing potential with a tangible product or service.

Risk and Reward: Seed investors embrace the risk inherent in early-stage ventures, hoping for substantial returns in the long term as the company matures and scales.

SEED VS. PRE-SEED

Seed Investing: Beyond the conceptual phase, startups at the seed stage exhibit tangible progress, potentially having developed a prototype or gained initial traction. Seed investors contribute capital to propel these promising ventures forward.

Pre-Seed Investing: Pre-seed funding, on the other hand, precedes seed investing, supporting entrepreneurs in refining their ideas, improving proof of concept, and establishing the foundational elements of their startups.

ANGEL INVESTING

Angel investors provide financial support during the pre-seed or seed stage, often bringing not just capital but also mentorship, network, and expertise.

They are usually individuals with liquid assets exceeding $1 million USD, and they invest their personal funds directly into businesses, primarily focusing on early-stage ventures, and occasionally, those in later stages of development.

WHY SEED INVESTING?

It serves as a vehicle for capital growth, strategically positioning investors to benefit from the potential success and expansion of innovative startups.

Investors can diversify their portfolios by engaging in seed investments across a spectrum of promising startups, mitigating risk and enhancing the potential for overall portfolio success.

Seed investing, a crucial step in the entrepreneurial journey, empowers investors to strategically contribute and benefit from innovative startup growth.

At OlarteMoure we’re enhancing the Seed stage for ventures based in science and technology, through our program called OMGrow.

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