The Startup Funding Journey
From concept to IPO - understanding the progression of startup funding
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ConceptualizationEarly OpsGrowthExpansionLate Stage
What is Equity Funding?
Equity funding involves selling ownership shares in your company in exchange for capital. Investors receive equity (stock) and potentially a board seat.
No repayment required
Investors share the risk
Dilutes founder ownership
May require giving up control
Key Terms to Know
Valuation: The estimated worth of your company
Dilution: Reduction in ownership percentage when new shares are issued
Term Sheet: Non-binding agreement outlining investment terms
Cap Table: Spreadsheet showing company ownership
Runway: How long until you run out of money
Which Funding Stage Are You At?
Answer these questions to identify your current stage
Pre-Seed
Do you have an idea and need to build a prototype?Seed
Do you have a working product and early customers?Series A
Do you have product-market fit and growing revenue?Series B
Are you ready to scale operations significantly?Series C+
Are you preparing for IPO or acquisition?Inspired by the Startup Funding Round Guide by Chris Tottman and Ruben Dominguez from The Founders Corner