Seed funding is often the first round of investment made by venture capitalists, angel investors, or crowdfunding sources to help a startup get off the ground. This funding is typically used to cover initial expenses such as product development, market research, and operational costs before the company generates any revenue. Seed funding is crucial for startups as it provides the necessary resources to develop a minimum viable product (MVP), test market hypotheses, and refine business models. Depending on the startup's needs and growth potential, seed funding can vary from tens of thousands to several million dollars.