In an equity raise, investors pay money to the company in return for a share of ownership of the company. Investors receive a share of company profits in the form of dividends and may get voting rights at shareholder meetings, among other privileges. In a debt raise, investors loan money to the company and may get periodic interest payments in the form of coupons. Debt holders expect to get their capital back at the end of the lifetime of the loan. In a pre-fund or pre-order, customers (note, they are customers, not investors) pay money for a product that they will receive later.
