This is where the seed funding takes place. It is considered as the setup stage where a person or a venture approaches an angel investor or an investor in a venture capital firm for funding for their idea/product. During this stage, the person or venture has to convince the investor why the idea/product is worthwhile. The investor will investigate the technical and economical feasibility (feasibility study) of the idea. In some cases, there is some sort of prototype of the idea/product that is not fully developed or tested.