Angels and the common mistake Search by ticker symbol, abbreviation or company name Ticker Abrv. The current scarcity of venture capital funding is most severe for those entrepreneurs seeking initial capital, or seed money.
Founders typically use seed money to fund research and development of operating prototypes.
Once a startup company has a working product prototype the company can attract successive, larger rounds of private funding to capitalize an operating business. Some venture capital funds will provide seed money, but the number is small and dwindling. Most venture capital funds prefer to participate in later rounds of funding. Historically, a substantial percentage of the angel population invests locally. Venture capital funds often invest nationally.