Early-stage financing refers to the initial funding that startups or new businesses seek to support their development and growth. This type of financing typically occurs when a company is in its infancy, often before it has generated significant revenue. Sources of early-stage financing can include personal savings, family and friends, angel investors, and venture capital firms. The primary goal of early-stage financing is to help entrepreneurs cover initial costs such as product development, market research, and operational expenses. This funding is crucial for turning innovative ideas into viable businesses, allowing them to scale and attract further investment in later stages.