The vision or concept is where every corporation begins. Dreams are what power the engine of our vast economy. Every visionary, however, cannot accomplish his or her goal without money. Where do you get money and how much will it cost? While the concept of a business may be the seed of its origin, raising capital is the first visible form of its growth. The chapter you are reading provides the basics of how money is raised. If you have no understanding of where money comes from and how it gets to the ultimate user, this chapter will provide that roadmap.

The first part of the chapter introduces you to the markets. Those infamous creatures called capital markets are defined and displayed. Before you can raise money you need to know where the money is located and how to gain access to that location. The chapter also demonstrates how the money flows from the investor to the corporation, and back. As with any transaction there is a cost. Depending on the source of the funds, different terms are used to define this cost. The chapter follows the money trail of various funding sources and shows you how to go about finding, pricing, and paying for the money you need to start your business.