It all starts with the vision, the project, the product, the service, No one has done it before, it is so painfully obvious now, How did no one think of such a great idea before. You have Come up with the perfect Idea. The Startup, India will aspire to be. You have Designed a Logo and Decided the name, You have made the list of Top Startups in India and promised you are gonna make the list. But the first biggest obstacle you face to enter the upcoming new startups in India is you lack funds to set up the company, buy the servers, and other necessities. Let’s figure out how you can do that:-
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What are the different stages of Funding?
Pre – Seed Funding
This is where you put your own money where your mouth is Literally in Your Startup in India, Here you are most likely spending your own hard-earned money with your co-founder, and if you have an especially loving family then maybe there too.
Seed Funding
Seed funding is the first official stage of the Funding stage. It usually represents the first official money that a business venture or enterprise raises. Some companies never extend beyond seed funding into Series A rounds or beyond. This is the first step to reaching the top start-ups in India.
Who invests as seed funding – Friends, Family, Incubators, Venture capitals but one of the most common types of investors in seed fundings are “Angel investors”. Angel investors are usually ex-entrepreneurs who sold their own successful businesses and now invest in new startups. They are a very good option because of their prior experience as an entrepreneur and the links they have in the industry making breaking into the industry much easier.
Series A funding
After your business is out of infancy and has a track record (an established user base, consistent revenue figures, or some other key performance indicator). Then you can take your business to the next level and ask for serious money.
In Series A funding, investors are not just looking for great ideas. Rather, they are looking for companies with great ideas as well as a strong strategy for turning that idea into a successful, money-making business.
In series A round, we have more traditional Venture Capital firms and with money, they bring their connections and soft power
Series B funding
In this stage, we take our business to the next level, past the initial stages and beyond the development of businesses. When you have made it to series B your company is already well established and developed a substantial userbase and made reliable sources of income.
In series B investors see that a business is doing okay and the company has proved its scalability in the mass market. Building a winning product and growing a team requires quality talent acquisition. Bulking up on business development, sales, advertising, tech, support, and employees costs a firm a few pennies.
Series B is also consisted of traditional VC firms and these VC firms attract more firms to invest in your Company.
Series C funding
If your company makes it to series C funding the chances are you are already quite successful and these rounds are usually to out expand your competitors or to in a lot of cases to buy other companies.
In series C funding the Vc firms feel very secure to invest in the company and low-risk appetite companies also participate giving you a better chance to raise an exorbitant amount of money.