Startup Funding Explained! - Deepstash

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one of the main phases for any startup or a business is Funding, if it's done right, the growth of the startup will be so great. knowing about the types of funding is most important for any founder, hope this helps you :)

Startup Funding Explained!

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What are different rounds in funding?

First-time founder?

confused between the terms and stuff in funding?

yes, starting up with an idea is easy, but starting up with funding is a bit confusing.

here's a simple stash for you to understand things around funding.

(Do save this fur further reference)

Bootstrapping

If you are at the ideation stage, you will start with borrowings/loans from your family, friends, and from your savings.

this is called Bootstrapping or Pre-Seed funding. At this stage startups mostly concentrate on building MVP( Minimum Viable Product).

Seed Funding

And next comes Seed funding, it's the stage when Angel investors invest in startups by seeing their MVP, vision, and confidence of startup growth.

While this is the starting stage for many startups, it is also a ‘wrapping up’ stage

Series

If the startup fails to utilize the first round and get in some results, it gets difficult for them to move to the second round of funding that is, Series A funding.

After seed funding now you'll get series funding. There'll be A, B, C series mostly and sometimes D&E too.

Series A

Once the start-up made some traction and got visibility with its product in the market, it'll eligible for Series A funding. In this round, startups are expected to have ideas about future development and revenue generation. 

By series A, startups mostly concentrate to increase revenue and ...

Series B

By entering Series B, startups might already figure out their product-market fit and doing great at their business. Now the series B funding for them is all for Expansion, development and concentrates more on team building.

Series C

Series C funding is done mostly by successful and good revenue-generating startups. This funding is used for introducing new products, acquiring other startups, and mostly to stand out from their competitors.

IPO

After series C, there'll be very few startups going through series D&E, mostly because of failures in development/operating or got new ways to make it bug before going to IPO (Initial Public Offering).

After these series of funding, the biggest thing for any startup/busines...

Who are Angel Investors and Venture Capitalists?

Angel Investors:

An angel investor is an individual who provides capital for a business/start-up, usually in exchange for convertible debt or ownership equity. Angel investors usually give support to start-ups at the initial moments.

Max investmentcapacity :$25,000 to...

TL;DR

Funding stages :

Bootstrap/Pre-Seed > Seed Funding > Series A >Series B > Series C >(Series D&E) or >IPO.

Thank you for reading, all the best for your journey

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