Seed money

[1] Traditionally, companies that have yet to meet listing requirements or qualify for bank loans, recognize VC as providers of financial support and value added services.

Seed funding can be raised online using equity crowdfunding platforms such as SeedInvest, Seedrs and Angels Den.

Investors make their decision whether to fund a project based on the perceived strength of the idea and the capabilities, skills and history of the founders.

The European Commission runs microfinance programmes (loans under €25 000) for self-employed people and businesses with fewer than 10 employees.

[7] Bootstrapping in this context means making use of the cash flow of an existing enterprise, such as in the case of Chitika and Cidewalk.