What are the initial funding sources and stages for starting a business?

The initial funding for a business typically comes from the founders themselves or from family and friends, which serves as the pre-seed stage of financing. Walter Cruttenden explains that nearly every company he's been involved with follows this pattern before moving to larger funding rounds. After establishing this foundation, entrepreneurs develop comprehensive plans and presentations to approach logical investors who understand their industry. The funding journey then progresses from small venture capitalists to larger VCs, and eventually to significant private equity sources like TPG and Comcast. This process, while challenging, serves as a healthy test of an entrepreneur's business viability.