On the other hand, some startups decide that they're not interested in raising more money — that the level they reach with seed money is good enough or that they're able to grow more without more investment — and choose to stop raising funding rounds at this point. This feedback widget is not intended for customer service issues. Seed funding typically starts with family, friends, and other angel investors who like to work with startup companies. For early-stage financing, venture capitalists focus on up-and-coming businesses with products they think will sell. If you were turned down by financial institutions in the past, they might be more interested at this point because you have actual collateral and a big stake in the success of the business as well. There are two main sources of investor seed new private equity firms money: