Differences in the Funding Stages of a Startup
Funding stages can be done in four stages where every stage will only boost your company to make products or enhance the services you’re providing.
It’s a slow process of pumping finance and raising capital of your firm. These stages help determine the growth and development process of your firm. So yes, these stages are quite important if you need that money to build your business.
Pre- Seeding Funding- Well, the first time of entering into the market, you can’t always get an investor in the first go so the help you get from your family, friends or your closest contacts are of utmost importance because not only they trust you but they are the backbone for your first baby step for building a brand.
Seed Funding- Now that your closest ones have given you the money, even if it’s enough to raise a little capital, you’ll definitely need the extra help to maybe launch your product or recruit people or develop the product and that’s where this funding will help you.
Angel investors and Micro Venture Capitalists, your own little helpers, see the potential in your business and help provide you with the means to create more revenue and growth.
Series Funding- Now this is where the big leagues come in; the super angel investors, the venture capitalists, hedge funds, banks and private equity firms want to be a part of your business. I guess you’re doing something right if bank wants to invest in your business.
This funding helps you create more revenue, increases your market share, helps expanding and the most important one is to help outlive your competitors. This sounds so exciting; I guess you should consider starting a business right away.
The IPO- If you are here then congratulations, my friend. At this point of the funding your company shares are going to be listed on the stock exchange where the general public will invest in your business.
Now that’s a news right; the entire world will know that there’s a new business in town and I guess you have successfully placed your business on the map.
It’s always going to hard and you’ll need all the help you’ll want during these phases so don’t hesitate to walk right through that door and ask help from Nova Scotia, the entire team is at your disposal if you truly want it.