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Importance of Series A B C funding stages for Startups
A journey of a thousand miles must begin with a single step”- Lao
A startup with a brilliant business idea has an aim to get its operations up and running. From meek beginnings, the company proves the stature of its products and services, slowly growing by overcoming several barriers thanks to the magnanimity of family, friends and the founder’s financial resources. Over the period, the company begins to grow on customer base, and the business begins to inflate its operations and goals. In this journey, the company has stood up through its competitors’ ranks to become highly valued, further opening new opportunities for future expansion that include new offices, employees and even an initial public offering (IPO).
“A ‘startup’ is a company that is confused about-
- What its product is?
- Who its customers are?
- How to make money?- Dave McClure”
Thus, if the premature stages of the hypothetical business explanation seem too good to be true, usually they are but in reality, they may differ. While there are fewer fortunate companies that develop according to the describe model (that too with little or zero outside help). On the opposite, there is a large percentage of successful startups have been involved in many efforts to escalate capital through different levels of external funding. These funding rounds allow the outside in a developing company and exchange their cash with the company equity or maybe partial ownership. The funding round terms are Series A, Series B and Series C, which means the procedure of developing a business by outside investment.
Depending upon the industry and level of interest among the prospective investors, there are other kinds of funding rounds also available for startups. It’s common for startup funding to get engaged in seed funding or angel investment funding at the outset. For a business that decides to bootstrap or merely survive off on other generosity or own pocket capital, Series A, B and C are necessary ingredients for them.