Raising capital is an important part of starting a business. As an entrepreneur, you may be able to minimize or delay the need to raise capital if your service is relatively inexpensive to bring to market and you minimize expenses or find a quick path to revenue, but its more than likely that you'll need capital at some point - either to simply bring the product to market or to capitalize on the opportunity by growing as faster than you would be able to otherwise.
The approach to raising capital is important, but it's also very simple and straightforward. That's not to say it's easy. It's a little like the Appalachian Trail - it's a clearly marked hike, it's difficult to complete, it takes many months, and it's only confusing when you wander off the track or try to find shortcuts. The steps are simple: (1) founders (2) friends and family (3) angels (4) venture, but...
...but the optimal time to approach each audience is anything but simple. Each of these audiences has different requirements and should be approached at the appropriate time. If you spend time approaching these audiences prematurely, you waste your time and ruin your chance to make a strong first impression. Both of these can be catastrophic mistakes for a young company.
