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The main purpose of the paper is a presentation of the seed and start-up capital as a source of financing of micro and small - sized firms. Seed money is the money that is used for the opening for a new business to pay for such preliminary stages as market research and product development. Seed capital and start-up capital are provided to finance the embryonic and early growth phases of a company. The thesis of this paper is a statement that the seed and start-up capital play an important role in the financing and development of micro and small - sized firms.