If you have sales, they're probably minimal, and profits are months away. Start-up capital is generally used to launch a significant marketing effort for your product or service, as well as provide the facility to fulfill orders promptly. This type of capital is still considered very high risk. Start-up investors will demand a considerable amount of equity as the price for participating at this stage. Funds at this stage are usually for operating capital and used to execute the next stage of your marketing plan.
Money is needed to keep up with significant growth.
The more significant your customer base, the lower the perceived risk. Never go for the money too soon. The greater the sales and profits, the less the perceived risk. A company with both sales and profits may close equity funding for half the amount of stock demanded by a financier from a company that has yet to turn a profit.