The three reasons that most firms need to raise money during their early life are cash flow challenges, capital investments, and lengthy product development cycles.

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During the early stages of a firm's life, it is common to experience cash flow challenges as revenue is still being generated. Capital investments may also be necessary to grow the business and develop new products. Additionally, lengthy product development cycles require funding to sustain the company during the R&D process.

The Three Reasons That Most Firms Need to Raise Money