. [costs or expenses] phil young, founder of pedal pushers, expects to spend the next one-half year developing and testing prototypes for a pedal replacement for children’s bicycles. (see part a of problem 1 for a description of the proposed product.) phil anticipates paying monthly rent of $700 for space in a local warehouse where the pedal pusher product will be designed, developed, and tested. utility expenses for power and heat are estimated at $150 per month. phil plans to "draw down" a salary of $1,000 per month. materials needed to build and test an initial prototype product are expected to cost $9,500. in addition, each redesign and new prototype will require an additional $4,500 investment. phil anticipates that before the final pedal pusher is ready for market at the end of six months, the initial plus two more prototypes will need to be built and tested. costs associated with test marketing the pedal pusher are estimated at $7,000.

Seed finance, also known as seed capital, seed money, or seed investment, is the first stage of a startup's capital-raising process. Seed funding is an illustration of equity-based financing. In other words, investors invest money in exchange for an equity stake in a business. This is often carried out in a less formal manner when compared to other equity-based financing methods like venture capital. Seed money primarily supports the company's first operations. For instance, the funds from seed capital may be applied to market analysis, the initial phases of product development (such as creating a prototype), or significant ongoing expenses like legal bills. Family, friends, and angel investors are frequently used as financial sources.

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The complete question is: . [costs or expenses] phil young, founder of pedal pushers, expects to spend the next one-half year developing and testing prototypes for a pedal replacement for children’s bicycles. (see part a of problem 1 for a description of the proposed product.) phil anticipates paying monthly rent of $700 for space in a local warehouse where the pedal pusher product will be designed, developed, and tested. utility expenses for power and heat are estimated at $150 per month. phil plans to "draw down" a salary of $1,000 per month. materials needed to build and test an initial prototype product are expected to cost $9,500. in addition, each redesign and new prototype will require an additional $4,500 investment. phil anticipates that before the final pedal pusher is ready for market at the end of six months, the initial plus two more prototypes will need to be built and tested. costs associated with test marketing the pedal pusher are estimated at $7,000. What type of financial capital is needed? What are the likely sources of that capital for Phill young?