October 6, 2022

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A Short yet Comprehensive Guide on Startup Funding Stages

A short yet Comprehensive Guide on Startup Funding Stages

In the past few years, startups have grabbed the limelight and gained attention in the world of business.

In the past few years, startups have grabbed the limelight and gained attention in the world of business.

Now and then, every individual is planning to have a startup, be it a college student or a mid-level manager who has left his job and ventured into this path, and even the funding process has become tough.

The viability of the project is always checked by every investor who will invest in your start-up. You may fund your idea or opt for external sources for gathering funds.

The funding process

There are startup funding stages that you need to follow to start your business. The whole process is not as easy as it may seem to you.

The important stages are stated below for your better understanding.

  1. Bootstrapping stage

It is also known as the pre-seed funding stage. Usually, in this phase, you will be able to secure small amounts from peers and relatives to start your business. Now is the time when you will test the market and find the feasibility of your product there. Based on the reviews and feedback, you will have to chalk out the future path.

In this stage, your mode of operation does not start. Here you only check how far your product or service is viable in the market.

  • Seed funding stage

Your startup is still in the preliminary stage where you need ample funds that can act like adequate water to sustain your business in the long run.

Apart from your known people, you can opt for crowd funding or look for Angel investors after launching your product successfully in this stage.

Once your product gains pace and is accepted by potential customers, you do not have to look back.

  • Venture capital

In this particular phase, you will have to value your business and increase it gradually to procure more funds from the investors.

There is a series of funding stages after the first two phases that have been mentioned earlier. Namely series A, B C, and D.

Series A concentrates on the funding to generate more revenues. Series B funding is necessary for expanding your business. Series C funding mainly aims for new product development by your entity.

Series D funding is the last stage where you can avail it to meet the failures faced by your organization or you have found a new opportunity to work on before going into IPO.

  • Initial Public Offering

For the startup funding, this is the final phase where you can offer your company shares for the public to purchase and invest in your entity.

Your entrepreneurial journey will be smoother and more delightful once you take the help of a professional platform where you can access the industry stalwarts and experts who are into business for a long time and knows the knick-knacks of the trade.

Be it the seed funding for startups or the other stages, all of it will be easy and quick when you have a good idea about this entire matter in advance. You can taste success in your venture soon with the help of these platforms. For more information, visit this website: https://www.i2mf.in/

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