Final answer:
Start-up companies typically have negative net cash flows from operations during their early stages. They often rely on financial capital from angel investors, business owners' personal savings, and venture capital firms.
Step-by-step explanation:
Start-up companies often face negative net cash provided by operations due to the lack of profits in their early stages. The reason for this is that these firms typically have an idea or a prototype but very few or no customers yet. Raising financial capital is a crucial challenge for these start-ups.
One of the primary ways they can obtain funds is through angel investors, who provide early-stage financial capital. Business owners might also invest their own personal savings, use credit cards, or take loans by using assets such as a home as collateral. Additionally, they could secure funds from venture capital firms. However, until these companies begin to generate profits, they will not have a positive net cash flow from their customers.