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Startups Funding milestones

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what are things investor will see in your startup at the time of pitching?, what are things Investors will want you?..we can understand all things with the help this file.

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Startups funding milestones -Pre-seed Investorswill wantyoutohave a clearideaof whatyouwant to launchand the type of solutionthatyou are bringingtowhatcouldbe a verybigmarketthat wouldultimatelydetermine the returnstheycan generate. At thisstage, itcouldbe justyouor perhapshave a few cofoundersthatare brainstormingwithyouhow the future wouldlooklike. Type of funders:accelerators,incubators,andcrowdfunding,andfriends&family Fundingamount: Under $100K ona convertiblenote -Seed Withthe financingobtainedfromSeed,youare targetingtogeta MinimumViable Product(MVP) to market.Investorswouldalsoexpectyoutobuild,atthisstage,the critical teamthat includesthe absolute necessaryfolkstohelpyouexecuteonthe vision. Most companiesare here at a pre-revenuestage andthe typical wayof financingisviaconvertible notes,inorderto pushback the valuation. Type of funders:angel investors,acceleratorsorincubators,crowdfunding,andfriends& family Level of funding:under$2M via convertiblenotesandequityrounds.Valuationsvarybutnevergo north of $4M.

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-Series A SeriesA financingroundshave changedsignificantlyoverthe years.Togive youan ideaVCfirmslike SequoiaorAccel are nowinvesting$10Mand up forSeriesA rounds.For thisreason,itisa little bit trickiertoaccomplishgettingto"fundabilitystatus"andmanystartupsendupdoinga bridge round betweenSeedandSeriesA. Duringthisstage,it isexpectedthatthe startupisshowingsome type of revenue growthmonthover month.If thisis notthe case there has to be a critical metricthe businessismonitoringthatis experiencingagoodamount of growth. Type of funders:familyoffices,VCfirms,highnetworthindividuals,andequitycrowdfunding Level of funding:between$5Mand$10M. If youhave a top tierVC itcouldbe $10M+. Valuationsrange between$10Mto $20M pre-money. -Series B Most of the companieseitherfail togetto thislevel ordecide togrow on theirown.Note thatonce you bringon a VC theywouldexpectthatyoudoat leasta 10X exitwhichwill provide thatkindof returns for the level of expectationstheyhave fromtheirLPs(akainvestorsintheirfund). SeriesBare usedto reallyscale uprevenues.Atthispointthe companyhasachievedbuildinga repeatable andscalable businessmodelthathasa track recordand that isalsoexperiencingmomentum and growthmonthovermonthfrom a revenue perspective. Type of funders:VCfirmsand some familyoffices Level of funding:over$15M at valuationsthatare around $50M pre-money.

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-Series C At the SeriesC level, there hasbeenareallygoodamountof growthexperiencedbythe company.At thispointitis commonto see over100 employees aspart of the operation.Thistype of financingwillbe usedtowardsan internationalexpansion.Giventhe demandof the productor service new revenue potential opensuponnewmarketsthatrequiresanupfrontinvestmenttofuel the operation. Type of funders:VCs,large institutional investors,andbanks Level of funding:typically, youwouldsee amountsbeenraisedaround$30Mto $50M. Valuationsvary but youwouldsee thematover$100M+. Rule of thumbis that youneverdilute yourselfbyover25% perround of funding. -Series D At thispointyouare close toan IPO butneeda goodpush to kickthingsinthe highgear to lookgood towardsan S-1 filing.Thisisthe formcompaniesfilewithcritical informationbefore goingpublic. Type of funders:large institutional investorsandbanks Level of funding:normallyyouwouldsee around$100M of capital beinginjectedintothe business. Valuationsalsovarybuthere itis normal to start to see unicornstatus($1B+ pre-moneyvaluation).

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Startups Funding milestones

  • 1. Startups funding milestones -Pre-seed Investorswill wantyoutohave a clearideaof whatyouwant to launchand the type of solutionthatyou are bringingtowhatcouldbe a verybigmarketthat wouldultimatelydetermine the returnstheycan generate. At thisstage, itcouldbe justyouor perhapshave a few cofoundersthatare brainstormingwithyouhow the future wouldlooklike. Type of funders:accelerators,incubators,andcrowdfunding,andfriends&family Fundingamount: Under $100K ona convertiblenote -Seed Withthe financingobtainedfromSeed,youare targetingtogeta MinimumViable Product(MVP) to market.Investorswouldalsoexpectyoutobuild,atthisstage,the critical teamthat includesthe absolute necessaryfolkstohelpyouexecuteonthe vision. Most companiesare here at a pre-revenuestage andthe typical wayof financingisviaconvertible notes,inorderto pushback the valuation. Type of funders:angel investors,acceleratorsorincubators,crowdfunding,andfriends& family Level of funding:under$2M via convertiblenotesandequityrounds.Valuationsvarybutnevergo north of $4M.
  • 2. -Series A SeriesA financingroundshave changedsignificantlyoverthe years.Togive youan ideaVCfirmslike SequoiaorAccel are nowinvesting$10Mand up forSeriesA rounds.For thisreason,itisa little bit trickiertoaccomplishgettingto"fundabilitystatus"andmanystartupsendupdoinga bridge round betweenSeedandSeriesA. Duringthisstage,it isexpectedthatthe startupisshowingsome type of revenue growthmonthover month.If thisis notthe case there has to be a critical metricthe businessismonitoringthatis experiencingagoodamount of growth. Type of funders:familyoffices,VCfirms,highnetworthindividuals,andequitycrowdfunding Level of funding:between$5Mand$10M. If youhave a top tierVC itcouldbe $10M+. Valuationsrange between$10Mto $20M pre-money. -Series B Most of the companieseitherfail togetto thislevel ordecide togrow on theirown.Note thatonce you bringon a VC theywouldexpectthatyoudoat leasta 10X exitwhichwill provide thatkindof returns for the level of expectationstheyhave fromtheirLPs(akainvestorsintheirfund). SeriesBare usedto reallyscale uprevenues.Atthispointthe companyhasachievedbuildinga repeatable andscalable businessmodelthathasa track recordand that isalsoexperiencingmomentum and growthmonthovermonthfrom a revenue perspective. Type of funders:VCfirmsand some familyoffices Level of funding:over$15M at valuationsthatare around $50M pre-money.
  • 3. -Series C At the SeriesC level, there hasbeenareallygoodamountof growthexperiencedbythe company.At thispointitis commonto see over100 employees aspart of the operation.Thistype of financingwillbe usedtowardsan internationalexpansion.Giventhe demandof the productor service new revenue potential opensuponnewmarketsthatrequiresanupfrontinvestmenttofuel the operation. Type of funders:VCs,large institutional investors,andbanks Level of funding:typically, youwouldsee amountsbeenraisedaround$30Mto $50M. Valuationsvary but youwouldsee thematover$100M+. Rule of thumbis that youneverdilute yourselfbyover25% perround of funding. -Series D At thispointyouare close toan IPO butneeda goodpush to kickthingsinthe highgear to lookgood towardsan S-1 filing.Thisisthe formcompaniesfilewithcritical informationbefore goingpublic. Type of funders:large institutional investorsandbanks Level of funding:normallyyouwouldsee around$100M of capital beinginjectedintothe business. Valuationsalsovarybuthere itis normal to start to see unicornstatus($1B+ pre-moneyvaluation).