Stages of Funding for Startups

Stages of Funding for Startups

February 9, 2024 by investor

Stages of Funding for Startups

Startups go through a series of stages from launch to growth to scale.

Each stage brings funding to the startup that serves the needs of its stage.

Here’s a list of stages for startup funding:

Pre-seed — this funding helps develop an idea, research the market, and build a core team.

This is most often brought by the team and family and friends.

Seed — this funding builds the minimum viable product and tests the market.  

Some companies join accelerators and incubators at this point for additional support.

Seed+ — This funding provides more capital to move the product from MVP into a standard one.

This is often an additional round of capital at the previous valuation.

Angels are commonly sought after investors for this round which seeks to go to market with the product.

Series A — this funding provides growth capital to the startup that has found product-market fit and is now growing fast.

Venture capital comes in at this stage to bring additional capital and expertise for business growth.

Mezzanine funding — this is debt funding that covers additional expenses such as filing for IPOs and is used to continue the growth of the business.

As the company matures the team seeks to reduce the use of equity and moves to debt funding.

IPOs — this funding comes from going public on the market to raise additional funds to scale the company.

Map out the path of your company using each of these funding stages.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Copyright (c) 2024, Hall Martin and All rights reserved.

Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.