Early Funding

Definition ∞ Early funding refers to the initial capital raised by startup companies or projects, typically in their formative stages. This financial support often comes from angel investors, venture capitalists, or crowdfunding platforms, enabling the development of prototypes, market research, and team expansion. It is crucial for validating business concepts and achieving initial operational milestones before seeking larger investment rounds. Securing early funding demonstrates investor confidence in a project’s potential for future growth.
Context ∞ Early funding remains a vital indicator of innovation and market sentiment within the cryptocurrency and blockchain sectors, often reported in news concerning new decentralized applications or protocols. Discussions frequently center on the balance between equity dilution for founders and the valuation expectations of early investors. Future trends suggest an evolution in early-stage financing models, including token sales and decentralized autonomous organization (DAO) grants.