OpenAI is a great example here; it raised millions of dollars before getting to their MVP stage, the caveat being the heavy research and training costs of their models.
Many mistakenly assume that the next logical step is to secure funding before building the product. In reality, raising funds with just an idea and some validation is challenging. For hardware, you need a prototype, and for software, you need a Minimum Viable Product (MVP). Ideally, a prototype or MVP precedes raising capital, but there are many exceptions. OpenAI is a great example here; it raised millions of dollars before getting to their MVP stage, the caveat being the heavy research and training costs of their models.