Seed funding is one of the first equity funding steps. Much of the seed capital raised by a company may come from sources close to its founders i.e., family, friends, and acquaintances. Obtaining seed capital is the first out of the 4 funding stages required for a startup to become a fully-fledged business. The funding generally covers the price of a proposal. After securing seed financing, startups may approach venture capitalists to get additional funding. Seed capital may come also from angel investors - professional investors who have a high net worth.