Website has been updated. Click here to reload
GO TO STARTUP ECOSYSTEM
Menu
×

No pending connections

    No active connections

    No removed connections

    No follows

    Close
    Other Articles
    Angel Investors and Venture Capitalists – Difference and How to Get to Them?
    Angel Funding - What is Angel Funding? Where to Find Angel Funding?
    Startup Capital
    Accessing Early Stage VC’s – An Excel List Early Stage Venture Capital
    The SEC has charged ICOBox with Securities Law Violations to the Cheer of Incumbent Players
    Howdoo Token Swap to Replace Lost Exchange Tokens.
    International Monetary Fund's Christine Lagarde Urges Openness Towards Cryptocurrencies While Emerging Countries Crack Down
    Watch Blockcard in Action
    Get to Know Ternio
    MANNY PACQUAIO - CHAMPION, POLITICIAN, CRYPTOCURRENCY? BOXING LEGEND INTRODUCES 'WORLD'S FIRST' CELEBRITY CRYPTOCURRENCY
    MAJOR CRYPTOCURRENCIES ARE SEEING RED - BITCOIN LOOKS SET TO FALL BELOW $9,000 SUPPORT
    What is a Cap Table and How Does a Cap Table Work?
    NANO LEDGER'S BROKEN PROMISE OF 'RADICAL DECENTRALISATION' AND SCALABILITY
    DECENTRALIZE CRYPTO KEYS? ONE NON-PROFIT COMPANY IS PROPOSING EXACTLY THAT
    When to Buy Crypto - Buy Crypto When Gold Surges up - According to Mark Mobius
    A Global Decentralized Currency may be the Future - Outgoing Bank of England Chief Calls on Centralized Financial Institutions to Create a Global Stablecoin
    What's in a Strategy? All you Need to Know About Go to Market Strategy
    DECENTRALIZATION: WHY DOES IT MATTER FOR THE HOSPITALITY MARKET?
    The SEC Has Issued a Cease and Desist Order against ICO Rating
    What Exactly is a High Risk Investment?
    A Beginner's Guide to Investment - How to set up an Investment Portfolio
    INSTITUTIONAL INVESTMENT IN CRYPTO REACHES $200 TO $400 MILLION PER WEEK - ACCORDING TO COINBASE'S CEO
    this is a funny video
    WHAT IS FOREX TRADING?
    Cover Image
    Posted by Shane McQuillan 22 Jul
    ComentComments
    Like (1)

    Types and Stages of Funding for Business Startups


    For anyone that's watched a TV show like Silicon Valley as a more recent example, you'll have likely heard phrases like 'Stage A,' 'Stage B,' 'Seed Capital,' or simply 'Runway' being used by some of the characters. To be as straight forward as possible, these refer to various levels of funding made available to companies of various sizes. So, what exactly is it that makes these various types and stages of funding for Business Startups so different?

    And when exactly do they become more or less relevant to your business? We'll be taking a look at just when certain kinds of funding can come into view for your business and the differences between them.

    Angel Investment

    Angel Investment is a small amount of investment capital that is used in order to get a very early-stage company off the ground. While these Angel Investors are usually specifically interested entrepreneurs, investment funds, friends and family.

    Pre-Seed Funding

    This amount of funding generally refers to a relatively small amount of initial investment capital which can be up to $150,000. Pre-seed capital is a kind of funding that is before any kind of institutional interest or investment.

    Seed Funding

    While Pre-Seed funding generally consists of a small amount, seed funding is the first wave of institutional investing that a company will obtain. Depending on the company and investment firm getting involved, Seed Funding generally consists of investment from $10,000 to $2 million.

    Typically speaking, Seed funding comes after Angel and pre-seed investing.

    Grants for Startups

    This involves funding provided to a startup from an investor, entrepreneur, government, etc. These are provided without the need for a return on investment.

    Venture Series

    Venture funding refers to a series of investment rounds taken up by venture capital firm, these include investment series ranging from A, B and beyond. With any investment from venture capital firms, these series come with pre-conditions in order to unlock additional stages of investment.

    Series A-B consists of funding rounds specifically aimed at smaller and sometimes more established companies and typically range on investment of $1-30 million.

    Meanwhile, Series C and later stages are actually targetting later stage companies and consists of investment rounds of $10 million or more.

    Funding Round

    This is more of a broad name given to the kind of funding that a company undergoes when the stage or kind are otherwise unable to be effectively described.

    Corporate Round

    This refers to a kind of fundraising round that is taken up by a corporation as opposed to a venture capital firm. While VC's tend to focus on supporting and creating a prodigious Return on Investment.

    Equity Crowdfunding

    These refer to dedicated digital platforms that allow users to participate in a crowdfunding campaign that a company takes on as opposed to seeking out Venture capital or other kinds of investment.

    show 0 deleted comments