A presentation to take you through the different stages a startup goes through to raise capital

1. DIFFERENT STARTUP FUNDING
STAGES

2. TEXT
INTRODUCTION
▸ Common misconception : To run a business you need to
have your own source of income and not rely on banks
and other financial institutions
▸ Reality : This is only true for the very initial stage of
funding and not the entire startup funding stages.
https://digest.myhq.in/different-startup-funding-stages/

3. TEXT
REVENUE-TIME GRAPH
▸ This Graph will help you understand at which stage you will use which
part of the funding
https://digest.myhq.in/different-startup-funding-stages/

4. TEXT
FIVE STARTUP FUNDING STAGES
https://digest.myhq.in/different-startup-funding-stages/

5. TEXT
SEED CAPITAL (FFF STAGE)
▸ The very first investment money, used to start
a business
▸ At this stage you either use
▸ Your own capital
▸ Money from friends and family (F&F)
▸ You can take help from ‘fools’, who are willing
to take the risk on you and your business
▸ Few of them give you the funding as goodwill
https://digest.myhq.in/different-startup-funding-stages/

6. TEXT
ANGEL FUNDING
▸ After raising money from FFF, you start
looking for Angel Investors
▸ Angel investors : People who are wealthy
and outside your group of family and
friends
▸ They are willing to take the risk on your
business as
▸ A loan
▸ In exchange for equity in your company
https://digest.myhq.in/different-startup-funding-stages/

7. TEXT
VENTURE CAPITAL
▸ Venture Capital (VC) comes into picture when you have already
launched your business and want help with distribution or sales
▸ Venture capitalists are people who are willing to invest in your
business in because they can earn a massive return on their
capital if your company is a success
▸ Note : If at the time of approaching the VC, the company is not
making any profit
▸ There are multiple rounds of VC financing with each round
typically given a letter like A followed by B followed by C, etc.
https://digest.myhq.in/different-startup-funding-stages/

8. TEXT
VENTURE CAPITAL (SERIES A, B, C, ETC.)
▸ Different VC rounds or series, that is A, B or C reflects different
valuations of the company and where they stand
▸ A company at the initial stage of rolling out their product falls
under series A
▸ A prospering company falls under series B
▸ A company with a higher stock price than the previous
evaluation falls under series C and so on
▸ However this is just an example and there is no hard and fast rule
https://digest.myhq.in/different-startup-funding-stages/

9. TEXT
MEZZANINE FINANCING AND BRIDGE LOANS
▸ Mezzanine financing is a hybrid of debt and equity financing.
▸ It is done when the company has progressed and are much
more profitable than before
▸ Reason : When an IPO opportunity is on their way or when
they need more funds for acquisitions or a management
buyout
▸ These funds are often used 6 or 12 months before an IPO
and are usually paid back to the investors by IPOs
https://digest.myhq.in/different-startup-funding-stages/

10. TEXT
IPO
▸ IPOs stand for Initial Public Offerings
▸ It is used by companies who have finally reached a stage where
they can raise money by selling their stock to the public
▸ An IPO is set up by the help of investment bankers and
financiers who commit to selling ‘X’ number of the company’s
shares at ‘Y’ price to raise money for the company
▸ Once the company stock is out for an IPO, it is traded through a
stock exchange like the National Stock Exchange (NSE) or
Bombay Stock Exchange (BSE) in India
https://digest.myhq.in/different-startup-funding-stages/

11. TEXT
CONCLUSION
▸ As a startup looking for
initial funding stages, you
may be thinking that VC
funding or an IPO are too
far along the line but they
are not
▸ According to yourstory.com,
in 2017 alone a total of
$13.7 Billionaire invested
across 820 deals in India
https://digest.myhq.in/different-startup-funding-stages/

12. TEXT
WITH THESE STARTUP FUNDING STAGES, ONE CAN
ELEVATE THEIR BUSINESS TO GREAT LEVELS
https://digest.myhq.in/different-startup-funding-stages/

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