Raising Capital for Startup Companies Stage One

There are typically three stages in fundraising for startup companies. The first stage is known as the C-capital stage. During this stage, founders will rely on several different sources of funds. The first source could be their own personal resources including lines of credit. Another source could be angel investors. Angel investors are very important to startup companies and are typically entrepreneurs themselves and have been through the process before. If an angel investor likes a company, they could raise up to $1M for the company as well as provide very good advice. Another good source of funds is friends and family. They may become investor or provide a loan. The final source is basic loans from customers. Sometimes founders will approach customers for short term loans. This is a great resource for startup companies.