1) If monetizing is likely, start to monetize. Proving that you can at least start will help fundraising immensely, and it's a long road.
2) Fundraising is a 3-6 month long process. Start before you need it. Angels are hard to find (especially in a non-hub), so start networking now.
3) You're talking about raising multiple rounds. Common! Angel, seed, series A, series B, etc. etc. The first round investors get a better valuation for their dollar but will expect to get diluted in later rounds.
4) Original source may opt to not invest more in later rounds. They retain the (diluted) ownership that they bought and generally have no special cash out options. Oftentimes early funding is convertible debt (aka bridge loan). Any investor expects a pay-out really only in a liquidity event (IPO or acquisition). Most have a 3-7 year horizon.
2) Fundraising is a 3-6 month long process. Start before you need it. Angels are hard to find (especially in a non-hub), so start networking now.
3) You're talking about raising multiple rounds. Common! Angel, seed, series A, series B, etc. etc. The first round investors get a better valuation for their dollar but will expect to get diluted in later rounds.
4) Original source may opt to not invest more in later rounds. They retain the (diluted) ownership that they bought and generally have no special cash out options. Oftentimes early funding is convertible debt (aka bridge loan). Any investor expects a pay-out really only in a liquidity event (IPO or acquisition). Most have a 3-7 year horizon.
In general, read:
http://paulgraham.com/startupfunding.html http://venturehacks.com http://www.askthevc.com/