Seed funding refers to the initial funding used to create and start a business or a new product with the view of generating economic benefits. Because of the high risks associated with new or startup businesses, the raising of seed funds could present huge challenges to entrepreneurs who have to rely on methods such as bootstrapping or rely on family and close friends to mobilise seed money to start the business and they transit to more official channels such as angel investors and venture capitalists when the business proves to be commercially and financially viable.