Have you ever wondered why one day your seedlings look healthy and the next day they are falling over and drooping? It's caused by a disease from bad fungus known as damping off. Vermicompost can help prevent this disease from attacking your seedlings. 
This picture from Cornell's website shows seedlings that were grown with and without vermicompost. http://cwmi.css.cornell.edu/vermicompost.htm
This beautiful poster shows how vermicompost helps prevent damping off. Too much information? Don't worry, just add 10% vermicompost to your seed starting and potting mixes to give your seedlings that extra layer of protection.