Introduction to Startup development stages and corresponding funding rounds.
The whole process of funding and developing startups has become more widespread because the cost of getting a product to market has dropped so precipitously in the past couple of decades from millions of dollars to typically anywhere from under $20,000 to $500,000.
The funding levels are relatively manageable by investors and the potential returns are huge. Potential. The risks are very high of any return, but the few startups that break out create legendary fortunes. That is why there are startup founders and startup investors.
A startup goes through a series of funding rounds on its journey from founder’s idea, through developing an MVP and customer discover, to finding Product/Market Fit, and scaling up operations and sales.
There are a lot of terms tossed around to describe the various rounds of funding that a startup can potentially receive.
These are the typical rounds encountered in an Angel and Venture-Backed Startup and not all startups receive all these rounds. Most small businesses don’t plan on scaling to become Unicorns and don’t pursue this funding journey.
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