December 07, 2000, 5:39 PM — Silicon Valley, Silicon Alley, Silicon Beach, and every other high-tech locale in
the country is full of start-ups, founded primarily by people who have left lucrative
positions at larger companies for the thrill of becoming an entrepreneur and the
potential for million-dollar post-IPO rewards.
But there's more to being an entrepreneur than getting a great idea, quitting your
day job, and setting up shop in your garage. You need money, and lots of it.
The four phases of funding
Funding your start-up doesn't start at the venture capital (VC) stage. In fact,
there are as many as three previous steps through which your project will have to go
through before a VC will even look at it.
The full funding cycle looks something like this: