Seed money is like a type of loan. When you get seed money, someone gives you money that you can use to start doing the thing that you want to do. For example, if you wanted to open a bakery, you could use the seed money to buy the ingredients and tools that you need to make and sell your goods. Seed money can come from family members, friends, or investors who believe in the idea that you have. The money is called a loan because it has to be paid back eventually. The people who gave you the seed money will get their money back with interest when the business makes enough money.