UNDERSTANDING STARTUP FUNDING STAGES

I recently tried searching for an article to briefly explain the different stages of #startup funding to someone, but I found it difficult to find something that was concise and straightforward. This article aims to provide a clear and easy-to-understand overview of the various stages of startup funding.

1. #Pre-Seed Round ($0 to $50,000): This is the bootstrapping stage. Funds are provided by startup owners, friends and family members.

2. #Seed Round ($50,000 to $3 million): This round is the product development stage. Funds can be sourced from micro VCs, angel investors, crowd funding, friends and family members.

3. #SeriesA Funding ($3 million to $6 million): First round of VC. Funds can be sourced from accelerators and VCs.

4. Series B Funding ($10 million to $30 million): Second round of VC. Funds can be sourced from VCs.

5. Series C Funding ($30 million to $50 million): Third round of VC. Funds can be sourced from VCs, private equity firms, hedge funds and banks.

6. Series D Funding ($50 million and above): Special round of funding. Funds can be sourced from VCs, private equity firms, hedge funds and banks.

7. #IPO (Uncapped): Stock market launch. This is basically generating funds by offering corporate shares to the public.