Given below are two statements:
Statement I: A startup's valuation is usually lower during the seed funding stage compared to later stages.
Statement II: Venture capital is typically the first source of funding for most startups.

In light of the above statements, choose the correct answer from the options given below:

Seed stage funding is the initial capital a startup receives to get from the idea stage to a viable business model, typically used for product development, market research, and initial operations. For various reasons, including investor interests and startup maturity, it is usual for startups to have lower valuations during the seed funding stage. Statement I is correct. Additionally, the earliest funding stages for a startup often involve internal resources or personal networks before a company can attract a Venture Capital firm. Statement II is incorrect. The correct answer is option C.