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Start up stages & Funding stages.pptx

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SnehalGoel1

1. There are typically 6 stages of a startup: pre-seed, seed, early, growth, expansion, and exit. Each stage involves validating ideas, building products, gaining customers, and growing the business. 2. Startup funding also occurs in stages: pre-seed funding is for validating ideas; seed funding is for product development; Series A/B funding is for growth and optimization; Series C/D funding supports global expansion; and mezzanine funding bridges to an IPO. 3. The ultimate exit stage is an IPO that allows the startup to go public, generating funds for further growth while also providing a way for founders to cash out their shares.

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Start up stages & Funding Stages
Stages of a start up 1.Pre-Seed Stage 2.Seed Stage 3.Early Stage 4.Growth Stage 5.Expansion phase 6.Exit phase
Pre-Seed stage As an entrepreneur, you should also question yourself with the following: • Is my solution a real answer to the problem being solved? • Can my solution affect other pain points in the industry by aggravating them and/or reducing the acceptance of the target market? • Is my solution similar to an already existing one?
Seed Stage • This phase seeks the first materializations of a startup. This can be done through developing prototypes, which are small experiments carried out to validate the initial idea on which a startup is based. • Its objective is the validation of the initial value hypothesis. An early-stage prototype of a development does not need to be functional, nor a viable product. • Validation of an idea is the process by which evidence is gathered, through experimentation, to make quick, informed, and risk-free decisions.
Early Stage • The early stage indicates the beginning of a phase in which the idea is left to evolve until it becomes a product or service in the market. It´s now the time to launch a test. It will not be the final version; it will now be tested to see it´s a Minimum Viable Product (MVP). • Typically, at this stage startups already have a team, independently of the size, if they cover the required areas and run the initial tasks. Now is the moment to have a business model defined, even if it’s not complete. • At this stage, in addition to the funding agencies seen in the previous phase, gain more value Venture Capitals and accelerators, which are entities that beyond supporting emerging ideas, also help new business models test their solutions and access customers.
Growth Stage • Strong market demand is met if a startup’s product or service reaches this stage. This means that there will be upward figures in terms of new customers, recurring customers, and billing. Profitability here is paramount. This is when the team starts to grow, and recruitment begins. • This phase has the highest failure rate. It does not mean that the product or service stays fixed, since you will probably have to adjust it to approach a new sector of your target audience, meet new demands, or occupy new spaces that weren’t planned.
Expansion Stage • Faced with a more widespread definition of the term startup, a scaleup demonstrates a proven business model that allows it to consider more ambitious goals, for example, internationalization, expansion to other sectors or hiring new professionals. • In this phase, companies that have already advanced in the execution of their business model move forward, consolidating their growth in both revenue and employees.
Exit Phase • This phase is not mandatory and does not always take part among startups. There are business models whose goal is to become a high value and long-term company. • This output can occur in many ways, although three common options stand out: sale of the founders’ shares to another company, acquisition by another company or an Initial Public Offering (IPO), which means their entry into sale.
Start-Up Funding Stages
Pre-Seed Funding • Is your idea viable? • Has your idea been done before? • How costly is your venture? • What kind of business model will you use? • How will you get started?
Seed Funding • Product launch • Product marketing • New employees • Market research on product-market-fit
Series A Funding • Optimizing your business • Offsetting financial losses or shortfalls • Further developing your product or service • Creating a scalable blueprint for growth
Series B Funding Startups in this stage have dedicated user bases and steady streams of revenue. At this point, you've proven you can scale your idea. Investors can now help you: • Employ advanced market reach activities • Increase market share • Form operational teams such as business development and marketing
Series C Funding Series C funding is for a company well on its growth path and often interested in expanding globally. It may be easier to find investors at this stage, as they trust the startup to succeed. Funds at this phase are used to do the following: • Build new products • Reach new markets • Acquire underperforming startups in the same industry
Series D Funding • There are usually two reasons a startup goes past the Series C funding round. They are: • New opportunities: A potentially lucrative opportunity appears that requires the company to act before the Initial Public Offering (IPO). • Subpar performance: The startup misses the goals set during the Series C round of funding. It then raises more funds in the Series D round to address the issues.
Mezzanine Funding & Bridge Loans • A mezzanine loan blends debt and equity for lenders, while bridge loans are short-term financing. • They close the financial gap between this phase and the IPO. • The funds might be used to buyout the management at another company or acquire a competitor. • Loans typically last six to 12 months and are paid back with proceeds from the IPO.
IPO • An IPO is the pinnacle of startup success. It occurs when shares of the company are offered up for public purchase for the first time. • The IPO is used to generate funds for further growth or allowing the startup owners to cash out their remaining shares for personal income.

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Start up stages & Funding stages.pptx

  • 1. Start up stages & Funding Stages
  • 2. Stages of a start up 1.Pre-Seed Stage 2.Seed Stage 3.Early Stage 4.Growth Stage 5.Expansion phase 6.Exit phase
  • 3. Pre-Seed stage As an entrepreneur, you should also question yourself with the following: • Is my solution a real answer to the problem being solved? • Can my solution affect other pain points in the industry by aggravating them and/or reducing the acceptance of the target market? • Is my solution similar to an already existing one?
  • 4. Seed Stage • This phase seeks the first materializations of a startup. This can be done through developing prototypes, which are small experiments carried out to validate the initial idea on which a startup is based. • Its objective is the validation of the initial value hypothesis. An early-stage prototype of a development does not need to be functional, nor a viable product. • Validation of an idea is the process by which evidence is gathered, through experimentation, to make quick, informed, and risk-free decisions.
  • 5. Early Stage • The early stage indicates the beginning of a phase in which the idea is left to evolve until it becomes a product or service in the market. It´s now the time to launch a test. It will not be the final version; it will now be tested to see it´s a Minimum Viable Product (MVP). • Typically, at this stage startups already have a team, independently of the size, if they cover the required areas and run the initial tasks. Now is the moment to have a business model defined, even if it’s not complete. • At this stage, in addition to the funding agencies seen in the previous phase, gain more value Venture Capitals and accelerators, which are entities that beyond supporting emerging ideas, also help new business models test their solutions and access customers.
  • 6. Growth Stage • Strong market demand is met if a startup’s product or service reaches this stage. This means that there will be upward figures in terms of new customers, recurring customers, and billing. Profitability here is paramount. This is when the team starts to grow, and recruitment begins. • This phase has the highest failure rate. It does not mean that the product or service stays fixed, since you will probably have to adjust it to approach a new sector of your target audience, meet new demands, or occupy new spaces that weren’t planned.
  • 7. Expansion Stage • Faced with a more widespread definition of the term startup, a scaleup demonstrates a proven business model that allows it to consider more ambitious goals, for example, internationalization, expansion to other sectors or hiring new professionals. • In this phase, companies that have already advanced in the execution of their business model move forward, consolidating their growth in both revenue and employees.
  • 8. Exit Phase • This phase is not mandatory and does not always take part among startups. There are business models whose goal is to become a high value and long-term company. • This output can occur in many ways, although three common options stand out: sale of the founders’ shares to another company, acquisition by another company or an Initial Public Offering (IPO), which means their entry into sale.
  • 10. Pre-Seed Funding • Is your idea viable? • Has your idea been done before? • How costly is your venture? • What kind of business model will you use? • How will you get started?
  • 11. Seed Funding • Product launch • Product marketing • New employees • Market research on product-market-fit
  • 12. Series A Funding • Optimizing your business • Offsetting financial losses or shortfalls • Further developing your product or service • Creating a scalable blueprint for growth
  • 13. Series B Funding Startups in this stage have dedicated user bases and steady streams of revenue. At this point, you've proven you can scale your idea. Investors can now help you: • Employ advanced market reach activities • Increase market share • Form operational teams such as business development and marketing
  • 14. Series C Funding Series C funding is for a company well on its growth path and often interested in expanding globally. It may be easier to find investors at this stage, as they trust the startup to succeed. Funds at this phase are used to do the following: • Build new products • Reach new markets • Acquire underperforming startups in the same industry
  • 15. Series D Funding • There are usually two reasons a startup goes past the Series C funding round. They are: • New opportunities: A potentially lucrative opportunity appears that requires the company to act before the Initial Public Offering (IPO). • Subpar performance: The startup misses the goals set during the Series C round of funding. It then raises more funds in the Series D round to address the issues.
  • 16. Mezzanine Funding & Bridge Loans • A mezzanine loan blends debt and equity for lenders, while bridge loans are short-term financing. • They close the financial gap between this phase and the IPO. • The funds might be used to buyout the management at another company or acquire a competitor. • Loans typically last six to 12 months and are paid back with proceeds from the IPO.
  • 17. IPO • An IPO is the pinnacle of startup success. It occurs when shares of the company are offered up for public purchase for the first time. • The IPO is used to generate funds for further growth or allowing the startup owners to cash out their remaining shares for personal income.