The stages of traditional fundraising – TechCrunch
Understanding these will help you know when and where to go for funding at each stage of your business. Early money stageThe first stage is early money, when cash is invested in exchange for large amounts of equity. When you begin fundraising, you’ll hear a lot of terminology including descriptions of various funding categories and investors. In the case of an entrepreneur, bootstrapping is synonymous with sweat equity — your own work and money that you put into your business without outside help. For example, you should plan to bootstrap for a year or less and plan to spend a certain amount of money bootstrapping.