New startups primarily rely on self-funding and loans from friends and family for capital. Approximately 30% of investment funds come from angel investors. Successful fundraising channels include introductions through personal connections and accelerators/incubation centers. The three main uses of fundraising are product/service development, expanding marketing to new markets, and increasing hiring. When calculating valuation for negotiation purposes, startups must understand their development stage and maturity, have strong financial reporting systems, ensure financial figures align with operational plans, learn different valuation methods, and determine a reasonable valuation figure based on their goals and stage.