October 5, 2022

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4 Different Stages of Funding for Startups

4 Different Stages of Funding for Startups

According to the study, after the U.K. and U.S.A., India is listed as the third largest startup ecosystem in the world.

According to the study, after the U.K. and U.S.A., India is listed as the third largest startup ecosystem in the world. Despite this fact, it is reported that 90% of the startups fail here. The brains and experience behind these startup ideas are either of college, school students or someone from the corporate industry who have left the job to pursue their dream. Thus, in the Indian market, you need to understand the different stages of startup funding to grow your establishing business. There are so many trusted and renowned firms who can help you with seed funding for startups and their qualified team of mentors will prepare a perfect business model that will grab investors’ attention.

Stages of Funding

  1. Pre-seed Funding stage: This is the very first step in the process of startup funding. In this stage, the startup owners either use their money, or due to shortage of funds, they lend money from family or friends. The funds they are raising is basically used for the research and development of the product or idea they wish to introduce.
  2. Seed Funding phase: The second stage of funding is seed funding for startups. It is just like watering the ‘seed’ to make it a plant. In this step, the owners of the company try to raise the funds so that they can conduct experiments and research to know the choice and preferences of their targeted customers. Also, when the product is tested and launched, it is released in the market.
  3. Venture Capital Financing: Venture capital financing offers resources to extend the business to new business channels, customer segments, or increase marketing efforts for acquiring additional customers. At this stage, your startup may either rise, or it may fall. Multiple funding rounds may happen and investors can also propose to join the organisation and provide further expertise.
  4. IPO (Initial Public Offering):IPO or initial public offering is the stage where an organization chooses to offer corporate shares to the public. Though this can be risky, as sometimes, the public is unaware about the share market plan. Also, if the company performs really well, its investors would gain a lot of profit from it.

If you are looking for a company who can help you in clearing the concept of startup funding stages, visit i2MF.It’s a better start-up incubator organization that provides a practice-based learning platform for all start-ups so they can accelerate their journey from ideation to market adequacy. The registration process can take place in two easy steps. All you have to do is click on the Register option available on the corporation’s website. Offered courses are very nominal, but you also customise it according to your need and budget. Everyone on the team working at the company has 50 years of experience. According to one of their happy customers, he had a great session with Deepali ma’am (Mentor Startup Business and Operations), as she offered a lot of great ideas that helped him while fundraising. For more information, visit, visit https://www.i2mf.in/.

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