![Early capital is expensive capital.](https://images.squarespace-cdn.com/content/v1/6644578a723a5d41de4dd9b6/1717471694884-FADTFISZ0783QMVX4QTU/early+capital.png)
Early capital is expensive capital.
"There is no more expensive capital than the first time you raise." At this stage, your company faces the greatest challenges: immature technology, a small IP portfolio, and high risk. This often means parting with significant equity for relatively modest funding.