The StitchCrew Guide to Fundraising: Finding the Right Capital for You

Building a business can be slow, uncertain, and often lonelier than people expect. You’re making all the decisions, juggling cash flow, and trying to move things forward without burning yourself out. So when you finally start thinking about raising capital, it can feel like any money is good money. Like the solution to the pressure you’ve been carrying all on your own.

But taking capital isn’t just about the check. It’s about who you’re letting into your business. You’re choosing who gets a seat at your table, who will have a say in your decisions, and who you’ll be reporting to when things get hard (because they will). That’s why alignment matters just as much as funding. Before you pitch or accept money, get clear on what kind of partner you actually want in your corner.

Know What You’re Looking For

Before you start sending out your deck or chasing intros, it's important to take a step back and get clear on what you actually want. A lot of founders jump straight into trying to impress whoever’s on the other side of the table, without first asking if their support is even the right fit for them. Capital isn’t just about who says yes. It’s about the kind of relationship you’re building, and whether it helps you move forward in the way that works for you. Here are a few things to get clear on before you take the next step:

• What kind of support, and relationship, do you actually want? Do you just need capital, or would strategic advice, warm intros, or operational guidance help you move faster? Some investors are hands-on and deeply involved. Others are more passive. Ask yourself how much communication and input you actually want. Would regular check-ins and board calls feel helpful or like added pressure? Be honest about the kind of support you need and the kind of relationship you’re ready to manage.

  
  

• What kind of relationship do you want? Would you rather have a close advisor who checks in regularly, or someone who gives you space and lets you run? Are you okay with monthly updates and board calls, or would that feel like pressure right now? Fundraising comes with different expectations depending on who you raise from. Be honest about what kind of involvement you want to manage.

  
  

• What are your non-negotiables? This could include values alignment, a shared belief in your mission, experience with underestimated founders, or demographic representation that reflects your audience or team. These might not show up on a pitch call, but they matter long after the check clears.

  
  

• What kind of experience are you looking for? A first-time angel investor might bring fresh enthusiasm. An experienced fund manager might know how to help you weather harder seasons. A newer fund might be more flexible, while a larger fund may come with more structure. Think about your stage and what kind of experience will actually be helpful to you.

  
  

• What will they expect from you? This part often gets overlooked. Will they expect monthly investor updates? Do they have a specific exit timeline in mind? Are they the kind of partner who texts on weekends or stays in their lane? Look for signals early, and don’t be afraid to ask other founders what their experience has been.

Knowing your criteria before you raise doesn’t just help you filter opportunities. It gives you the confidence to stay grounded when you start hearing advice that’s not aligned, or when a check comes with terms that don’t feel right. It’s easier to make good decisions when you’ve already defined what “good” looks like for you.

Understand the Types of Investors You Can Raise From

There are a lot of ways to raise money, but not every type of capital works the same way. And not every investor is motivated by the same things. Before you pitch, it’s important to understand who you’re talking to, what they care about, and how their goals line up with yours. Because when you understand the source of the money, it gets a lot easier to tailor your approach and avoid surprises later.

Friends & Family Rounds

Friends and family are often the first source of capital that founders are encouraged to pursue, but that advice comes with a lot of assumptions. Namely, that your personal network has the kind of money to invest. For many underestimated founders, that’s just not the case. And being told to “start with your network” can feel frustrating or even disqualifying when your circle isn’t made up of people with disposable income. That said, for those who do have access to even a small amount of early capital from friends or relatives, this round is often based more on personal belief in you than a formal business pitch. It can be flexible and fast, but because it’s relationship-based, the stakes are often more emotional.

Why they may be a fit. If you have people in your life who truly understand the risk and still want to help you get started, this type of capital can give you the breathing room to test, build, and show early traction.

What to look out for. Don’t skip the hard conversations. Mixing personal relationships and money gets messy fast when expectations aren’t aligned. Don’t assume people owe you their money. And don’t take capital out of guilt or pressure. If someone offers to invest, be clear about the risks, especially that this money may not come back to them, and put the terms in writing. Being upfront now protects the relationship later.

Crowdfunding

Crowdfunding lets you raise small amounts of money from a large number of people, usually through online platforms. There are two main types: equity crowdfunding and non-dilutive crowdfunding (like rewards-based campaigns). And while they both involve rallying community support, they operate very differently. Equity crowdfunding platforms, like Wefunder and Republic, allow people to invest in your business in exchange for a small ownership stake. These platforms help consolidate all those investors into a single entity on your cap table, making the process smoother for future fundraising. This path is regulated, requires legal prep, and is best suited for founders who already have traction or an engaged audience. Non-dilutive crowdfunding, like Kickstarter or IFundWomen, involves raising money in exchange for perks, early product access, or donations. You keep full ownership of your business, which can be a big advantage if you're still testing or not ready to give up equity.

For founders who don’t have access to traditional investor networks, or who want to prove traction before raising a larger round, crowdfunding can help validate demand and build loyalty at the same time. But just because it’s open to everyone doesn’t mean it’s easy. A successful campaign takes real work, especially on the marketing and community-building side.

Why they may be a fit. Crowdfunding gives you a way to engage your community while raising capital on your terms. If you have a compelling story, a prototype or product in development, and an audience that already believes in your vision, this approach can be a great way to raise capital and validate demand at the same time. It's also more inclusive since people can invest with smaller checks.

What to look out for. Crowdfunding is not as simple as uploading your story and watching the money come in. Campaigns take planning, messaging, and hustle. And if you’re offering equity, you’ll need to prepare for ongoing responsibilities like financial disclosures and investor updates. Make sure you understand the legal and logistical implications, especially as your company grows.

Accelerators

Accelerators are short-term programs designed to help early-stage startups prepare for the next stage of growth, usually by offering a mix of funding, mentorship, and community. In exchange, some accelerators take equity, while others (often funded by cities, universities, or nonprofits) are non-dilutive and simply focused on supporting local or mission-aligned founders.

Most accelerators operate on a set timeline, anywhere from a few weeks to several months, and bring you into a cohort of other founders. Some are highly competitive and come with national visibility. Others are more regional or industry-specific, and may offer more personalized support. The goal is to help you move faster, but not every program offers the same level of support, and not every business is a fit for the accelerator model.

Why they may be a fit. If you're early in your journey, still shaping your model, and need structure or exposure, accelerators can help you level up quickly. It’s also a good path if you’re outside traditional tech hubs and need access to networks or visibility.

What to look out for. Not all accelerators offer the same value. Some may be too generic, predatory, or push a growth-at-all-costs mindset that doesn’t match your business. Before you apply, get clear on what you need and make sure the program delivers on it. Talk to alumni, ask about post-program support, and weigh the equity ask carefully.

Angel Investors

Angel investors are wealthy individuals who invest their own money into startups, usually in the early stages. Unlike VCs, they’re not managing anyone else’s capital, which gives them more flexibility in how and why they choose to invest. Some angels are former founders, operators, or professionals who want to support the next generation or have a personal interest in certain industries or solutions.

Angel checks can range anywhere from $10K to $100K+, and they often come in before institutional capital. Some angels invest solo, while others group together through syndicates or angel networks. Their involvement can vary widely with some being hands-on and generous with advice or intros, others are completely hands-off after wiring the money.

Why they may be a fit. Angel investors can move quickly and bet on your potential before everything is perfectly in place. The best ones bring more than money, they bring operational experience, honest feedback, and warm intros that can help you grow faster. If your business is early but promising, a strong angel can be a powerful partner.

What to look out for. Just because someone has money doesn’t mean they’ll be a great fit. Watch out for angels who are overly controlling, unclear about expectations, or investing outside their lane. If they don’t understand early-stage risk, or panic at the first slow month, they can become more of a liability than a help. Make sure their values, communication style, and expectations match what you’re building and the stage you are at. Ask other founders how it’s been working with them before saying yes.

Seed Funds

Seed funds are small venture capital firms that specialize in investing early, usually the first institutional check into a company. They typically write checks anywhere from $100K to $1M and often take part in pre-seed or seed rounds, sometimes alongside angels or other funds. Unlike individual investors, seed funds are managing outside capital (usually from LPs like family offices or institutional investors), so they do have targets and expectations to meet, but they tend to be more flexible and founder-friendly than larger VC funds.

Some seed funds are generalists, others focus on specific sectors, demographics, or geographies. They might invest in a few dozen companies a year and often pride themselves on being early believers. This means they’re usually more comfortable with some risk and uncertainty, as long as you can show early traction signals. Many seed fund managers are former operators or founders themselves, which can make them uniquely empathetic partners.

Why they may be a fit. Seed funds are built for early-stage bets. They often understand the chaos of early traction, pre-product-market fit, and scrappy teams. Many will support you with strategic guidance, intros to future investors, and even help with hiring. Because they’re often the first institutional partner on your cap table, a good seed fund can set the tone for future rounds.

What to look out for. Like all institutional capital, seed funds come with expectations. Make sure they’re aligned with your stage and goals and not just pushing you to grow faster than your business is ready for. Be cautious with funds that are unclear about their check size, follow-on strategy, or decision-making process. Some may still be figuring out their identity or looking for quick wins to boost their track record. Take the time to understand what they’re optimizing for and how hands-on they want to be.

Venture Capital Funds

Venture capital (VC) funds are the most talked-about, but least accessed, form of startup capital. These funds typically write larger checks ($1M+) and invest in companies they believe can deliver big returns, fast. Most are looking for businesses that can scale significantly in a short period of time, the unicorns that can return their whole fund. They’re not investing to help you build a steady, sustainable company. They’re betting on outliers.

VCs manage money from limited partners (LPs), like pension funds, universities, and high-net-worth individuals, and they’re under pressure to return that capital with interest. That pressure shapes how they invest, how fast they move, and what kind of companies they back. For founders, that means VC can be a powerful accelerant, but it also comes with high expectations, aggressive growth targets, and limited room for error.

Why they may be a fit. If your business has the potential to scale quickly, dominate a category, or create a new one altogether, VC might be the right path. The right firm can open doors, connect you with future funders, offer deep expertise, and signal credibility. And if your long-term vision includes a big exit or IPO, VC funding can help you build toward it.

What to look out for. VC isn’t right for every business, or every founder. VCs expect speed, scale, and a clear path to exit. That means raising again (and again). Be mindful of pressure to grow at all costs, especially if it compromises your values or long-term vision. Make sure you understand a fund’s thesis, timeline, and expectations before signing on. And remember, the more capital you raise, the more control and ownership you may give up. Choose partners who respect your role as the builder, not just their role as a backer.

Explore Non-Dilutive and Alternative Capital

Not all funding has to come with equity strings attached. In fact, some of the most overlooked options are non-dilutive, meaning you don’t have to give up ownership to access them. These alternatives can be especially helpful if you’re early in your journey, still validating your model, or not ready to bring in outside investors just yet. The key is finding the right tool for your current stage and goals.

• Grants. These are usually offered by government agencies, nonprofits, or corporations to support specific industries, communities, or impact areas. They don’t require repayment, but the application process can be time-consuming, and competition is often high.

  
  

• Revenue-Based Financing. This model allows you to raise capital and repay it through a percentage of your future revenue. It can be a good fit for businesses with steady cash flow who want flexibility without giving up ownership.

  
  

• Business Loans. Traditional banks and lenders, including SBA-backed options, offer loans based on creditworthiness or collateral. These can provide working capital, but they come with fixed repayment terms and may be harder to secure at early stages.
  

• Non-Equity Accelerators & Incubators. Some programs offer mentorship, community, and resources without taking equity. They may provide stipends or small grants to help you test and build your business, especially if you're still pre-revenue.
  

• Corporate Partnerships. Larger companies sometimes fund pilots, offer development support, or provide access to customers in exchange for collaboration. These can open doors, but often come with specific expectations or deliverables.

  
  

• Crowdfunding (Non-Equity). Platforms like Kickstarter or iFundWomen allow you to raise money directly from your audience in exchange for perks, products, or early access, not ownership. This works well for consumer brands and mission-driven campaigns.

Choose What Fits the Business You're Building

There’s no single right way to fund a business. Sometimes that means finding the investor who truly gets your vision. Other times, it means staying in control longer, testing your model, and using smaller, scrappier tools to keep moving forward.

No matter which path you choose, the goal is to grow on your terms, with partners who believe in the business, the problem you’re solving, and the way you’re solving it. And once you know who those partners might be, it becomes a lot easier to start building the kinds of relationships that lead to real, aligned capital.