Think of your “deal” in this way:

1. Incubator – ‘correct’ you are chatting ideas and concepts, and a long ways from “start up”. You are funding it. If you are lucky, someone may pay you while you are conducting research to form and prove a working model.
2. Pre Seed – This is where the working model is taking shape. You may be angel money at this stage. Otherwise, count on yourself, friends, and relatives.
3. Seed Stage - The Working Model is sound, and now can be prepared to be validated. Raise money. $300-500k. (Maybe less/more – there is no set amount). You get what you can and show what you need to build and validate. You have to have test customers who like your product and will pay for it, or you never leave this stage.

• Many Entrepreneurs think great engineering is what is needed. Yes and No - 99% of Venture Capitalists will not fund engineering alone, some do. They will fund with the expectations that superior product edge and engineering must be there and is obvious or translates into Value proposition that can be sold. Companies fail here all the time, because engineers mistakenly believe marketing/sales are an ‘easy part”. HUGE ERROR.
• Marketing Strategy takes shape here at the Seed Stage. Without Revenues, you have nothing. Lots of skilled thinking required here. This is where bookwork and educational credential ends for some, and real experience is key to success. Talking about what is needed is not doing what is needed. Execution takes talent and Execution is never easy. Think about this. Moreover, never forget it.
• Oops, maybe you do have good engineering and IP, but you do not have a company, so you will never be an “Early stage” company. So go no further and stop here until you shape a company.

4. Early Stage Start up - Many entrepreneurs characterize themselves as “early stage” when they are actually “seed stage or earlier”. At Early Stage, you have validated your service, products, have a working model, and you have referable paying customers. Management Team is in place or at minimum, identified, or committed and will be on board fulltime with funding.
5. Start up Funding – This stage is fun, and where value is marked up as proof of concept is unequivocal. Validation is widespread. Now, the company raises a bigger round to move the company forward into profitability.
6. Late Stage – More of Stage 5
7. Exit Stage - Merge or Acquisition, Business Combination, Possible IPO, possible the company decides to self-fund, or alternative finance and continue as private. The Board decides what is right.
BTW the moment you take outside money, decisions are now for shareholders, not just you. All shareholders deserve updates. As CEO or founder, et al you enjoy being in the ‘bully seat’ which has pluses and minuses but never forget your investors as they aid your bills.