Of course, but it’s almost always after a company at least has a product and usually after revenue is funding salaries. Using PG’s phrase, it’s after the company is “default alive.” By that point, the founding risk is pretty low.

A first-time entrepreneur raising capital without a product or revenue is, for all intents and purposes, unique to tech and biotech. The very few exceptions aren’t common enough that an entrepreneur could plan around them.

For anyone considering a non-tech business, the podcast “How I Built This” covers it well: http://www.npr.org/podcasts/510313/how-i-built-this