Raising capital for a startup is initially less of a legal issue and more of a practical task of identifying and charming relevant funding sources. While there is plenty of general advice offered on the topic, finding answers to your specific questions can be a challenge.
The Harvard Innovation Lab, known as I-Lab, is the venture incubator of Harvard University. I-Lab was launched in 2011. The incubator has issued a seminar video on raising capital for startups that incorporates a stimulating question and answer process throughout the seminar. If you are contemplating locating formal funding for a startup, this video is a must see as it likely incorporates answers to your specific questions about the funding process.