What Are The Funding Stages For Startups?

Page 1 of 2 Page 2 of 2 A THE FUNDING STAGES FOR STARTUPS ACTUALSIMPLE.COM A 1. Pre - Seed Funding You may only have the prototype . This is when you get your funding . People usually fund businesses at this stage in exchange for equity . ● 2. Seed Funding . In this stage , you are currently serving some customers and are active in the market . • The investors would usually check all the reports and the current status of your product or service . They would want to know how your product is performing in the current market . ● 3. Series A Funding • The Series A funding would typically range in millions whereas the pre seed funding and seed funding is below millions . ● 4. Series B Funding • The evaluation of companies in series B funding is more than $ 10 million . . ● 5. Series C Funding Series C funding would help them upscale the entire business globally . • Investment banks , hedge firms , and private equity firms participate in series C funding . This is because the companies at this stage have proven their names through their profits . Source : https://actualsimple.com/funding-stages-for-startups/ THE FUNDING STAGES FOR STARTUPS ACTUALSIMPLE.COM Expanding the currently running business by acquiring more customer base , hiring more employees , getting new office space , or even paying the amounts raised in the first two stages . ● The series B funding includes the investment by investors primarily in equity - based deals . 6. Series D Funding Series D funding is primarily aimed at companies looking to fix certain things at hand . This can be a new competitor in the market . Or maybe a new and unique product idea out of the blue . There is no limit to the number of funding rounds a company wants to participate in . It would depend on the company's goals and the capital required . 7. Mezzanine Funding & Bridge Loans • Mezzanine funding is also a short term financing tool for companies . It is a mix of debt and equity financing . Bridge loans are usually short - term loans that the company can use to fund its expenses . • This phase of funding usually aims to bridge the gap between the company's current value to its stage of releasing its IPO . ● 8. IPO ( Initial Public Offering ) ● This is probably the final stage and method of raising further funds for your company . This is when you can purchase the shares and invest in the company as an individual . This is considered a successful and major step in the business . The business finally goes public . It is now raising funds through the public , allowing them to earn as well . Source : https://actualsimple.com/funding-stages-for-startups/ ACTUALSIMPLE.COM A