How Seed Funding Helps Start-ups Achieve Product-Market Fit

AT ITS CORE, SEED FUNDING PROVIDES START-UPS WITH THE FINANCIAL RUNWAY TO DEVELOP A MINIMUM VIABLE PRODUCT (MVP) AND TEST IT IN THE MARKET

- GAURAV VK SINGHVI

Throughout a start-up's journey from inception to maturity, several rounds of funding are raised, typically progressing from pre-seed to seed, Series A, B, C, and eventually an Initial Public Offering (IPO) if all goes well. Each funding round is significant, but early-stage funding-particularly seed funding-is especially critical. At the seed stage, start-ups often have little to no traction, and the capital provided helps them bridge the gap between a promising idea and a viable business. This is where seed funding plays a pivotal role in helping startups achieve what is known as Product-Market Fit (PMF), an important milestone on the path to long-term success.