Fund Raising| Startup Funding and Its Different Stages| Valuqocapital
A startup Funding demands more than just an idea. 60% of startups require funding to expand their ground.
Earlier startups Fund Raising were restricted towards limited fundraising options but now various options are available like IPO, approaching angel investors, Bank loans, etc.
A startup has to undergo various stages after approaching investors for fundraising. Let's discuss these stages:-
Stage 1- Pre-seed funding stage
It refers to the period when startups are beginning to run their businesses. Investors avoid startup's at this stage. This stage is normally known as bootstrapping.
Stage 2- Seed Funding Stage
Since almost 29 percent of businesses fail because they run out of money during bootstrapping, seed money is essential to launch a company.
Startup Valuation and Fundraising
Startups that value between $ 3 million- $ 6 million are eligible for seed funding. The seed stage funding ranges from $50,000 - $ 3 million for startups.
Stage 3- Series A Funding
At this stage, the startup must have launched a product and developed a customer base with constant sales.
Stage 4- Series B Funding
Startups that have gone through earlier VC funding stages already have a sizable user base and a consistent flow of income. They have demonstrated to their investors that they are capable of achieving success on a bigger scale.
Stage 5- Series C Funding
Startup Funding that receive series C funding should already be on their growth trajectory. These firms look for additional investment that could aid in the development of new goods, expansion into untapped markets, and even the acquisition of other struggling startups in the same sector.
Stage 6 - Series D Funding
Few Investment Banking Boutique Firms in Mumbai startups see the need to get to this level. The Series D investment level enables business owners to raise money for a unique circumstance. For instance, a merger and/or if the company hasn't yet achieved its growth objective.
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