The seed stage is the initial phase in a startup’s lifecycle where entrepreneurs secure early funding to develop their ideas into viable businesses. At this stage, funding is typically used for product development, market research, and building a core team. Seed investors, often angel investors or early-stage venture capitalists, take on significant risk by investing in unproven concepts. However, if successful, seed-stage companies can progress to larger rounds of funding and eventually become industry leaders. Seed funding is critical for establishing a foundation for future growth.