There are several stages of funding that a company may go through as it grows and develops. Some common stages include:
- Seed funding: This is the initial stage of funding, where a company raises money from friends, family, and angel investors to develop a prototype or proof of concept.
- Venture capital: This stage involves raising money from venture capital firms, typically looking for companies with a proven product or service, a solid management team, and a viable business model.
- Series A, B, C, and beyond: These stages involve raising money from venture capital firms and other institutional investors. The “series” refers to the round of funding, with each round typically involving more significant amounts of money and more favourable terms for the investors.
- Private equity: This stage involves raising money from private equity firms, which typically invest in more mature companies that are looking to expand or restructure.
- Initial Public Offering (IPO): This is the final stage of funding, where a company goes public and sells shares of stock to the public.
It’s worth noting that these stages are not fixed and a company may move back and forth between different stages, depending on its growth and development.
