Seed Funding:

Seed funding is an investment made into a startup to support its early-stage development. It often involves an exchange for equity or convertible debt. In exchange for seed funding, investors receive a share of ownership in your company, including some influence or control over business decisions. The E-hub is foregoing this. Instead, it requires that the recipients work with alumni and/or faculty mentors who are assigned to further develop their ideas. The alumni and/or faculty mentors are also foregoing their interest. Instead, they follow an honest broker policy, working with the E-hub, and are committed to helping student teams navigate the next steps in their entrepreneurial journey. Seed funding typically comes with an expectation that the money will be used to achieve specific milestones, such as product development, market research, or scaling operations. The primary purpose of seed funding is to provide the necessary capital to help a startup grow and reach a stage where it can attract larger investments or become self-sustaining.
 

Prize Money:

Prize money is a one-time reward for being the best or close to best in a competition. It is usually a cash award. It is intended to be a recognition for the quality of the work (which may be the content and presentation of your idea and its potential impact in a pitch competition), rather than as an investment. Generally, there are no specific restrictions on how the prize money must be used. The recipient may spend it on any aspect of their business or for personal expenses.