Why There are Different Series in Startup Funding and What’s the Differences
When startups raise money, a founder and a co-founder have to contact different investors, show their talents to attract investments. Usually we heard about several terms like seed round, Series A,B,C. What does they mean in startup funding process? In one word, the company receives money from venture funds that focus on specific growth points at specific sizes. Let’s explain a little more about them below: Seed round This is usually a small amount of money (Generally USD 70,000 to 150,000) given to a person or a team to give it the momentum it needs to turn its initial idea to product. Normally, they will have a concept and will know that it has potential viability on the market, but they won’t have a working prototype yet. Investment orgonizations hardly involve this round, but individual angel and incubator foundation focuses on this part. Series A When a product have sufficient data and the business model has been verified preliminary, they can seek funding from a ...