Seed Capital

The early money for a start-up. Juuusssst enough to get them going. Two kids in a garage with a computer. The kids want to create an algorithm to better organize the internet. The seed capital for GOOG was the first million bucks and change, invested by angels, whose money was either at a pre-set valuation, or which converted at some discount to whatever the eventual A Round ended up being.

Like...if the A Round valued the company at $20 million, then investors of that $1 million received, say, $2 million in value, or at "half the valuation" of the A Round.

Why half? Way more risk in seed capital. Most seeds, just as in real life gardens, never germinate.