It might be needed for two purposes:
- investing in the company to provide the whole process of incorporation and the first periods of its run;
- raising funds for further lending.
The possibility to raise funds from certain sources varies, as it can include both private individuals and legal entities, mainly hedge funds and venture capital companies.
There is also an option that has been trending for some years now, which can give you a huge boost at the start. It requires acquiring a ready-made business or merging it with an existing company that already has all the licenses and stuff.
Another opportunity for startup enthusiasts can be a state initiative. Especially following the COVID-19 crisis, certain countries, including the USA, developed programs that attract young businesses with tax incentive schemes, benefits for foreign startup owners, and simplified licensing.