Also known as Seed Capital. It is the capital needed by a business to get started. This may come from the personal assets of the founder or from family and friends. It may also be supplied by an Angel Investor, an affluent individual who invests in an entrepreneurial start-up or expansion, in the hope of receiving a very high Return on Investment in a relatively short timeframe. Venture Capitalists and traditional banks usually view businesses in the start-up phase as high risk and are reluctant to provide Starting Capital.

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