The problem usually is that startups ask the wrong question.  Instead of asking, “how do I get $250,000 to start my business,” you should be asking “how can I build this business WITHOUT any money.”  The resulting answer and plan will help them develop the proof necessary to get funding down the road.  And at the same time, gets the business started quickly instead of wasting months and even years trying to convince someone to invest in an idea.
Look Mark Zuckerberg started Facebook without a dime!  And if you’ve every seen the movie the Social Network, you’ll notice that the amounts of money that they had when they were beginning were hundreds of dollars not hundreds of thousands.  Asking your brain the right questions and gives you better answers that will help you ultimately achieve your desired outcome!