{"id":9231,"date":"2021-08-26T10:58:07","date_gmt":"2021-08-26T07:58:07","guid":{"rendered":"https:\/\/ucluster.org\/?page_id=9231"},"modified":"2022-01-06T11:36:32","modified_gmt":"2022-01-06T09:36:32","slug":"startup-funding-rounds","status":"publish","type":"page","link":"https:\/\/ucluster.org\/en\/school-of-startups\/startup-funding-rounds\/","title":{"rendered":"Startup Funding Rounds"},"content":{"rendered":"\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-drop-cap wp-block-paragraph\">When startups evolve and go from the Seed stage to Growth stage and finally, to Maturity stage, they often seek external funding to accelerate their growth. Not all startups raise external capital. Some decide to finance their growth only from the revenues they generate through the regular course of business. However, most technology startups do get funded by investors, because it speeds up their plans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Startups in the Seed stage of their life cycle are still working to align their product with the needs of users (Product-Market Fit) and do not have large sales. Depending on how far they are in developing their product and establishing sales channels, they can get funding from Friends, Family and Fools (FFF), Angels, or from Early stage venture capitalists via Pre-Seed or Seed rounds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Growth stage startups have already found their Product-Market Fit and their main goal is scaling sales in the user segment that was identified in Seed Stage, as well as searching for new user segments. Often, startups do not have enough resources at this stage to quickly scale sales channels. That&#8217;s why startups go to professional investors. e.g. venture capitalists, and raise funding for the development of the company. Such investments are called Series A, B, C and there may be several of such rounds until the company achieves self-sufficiency in financing.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-jetpack-rating-star\" style=\"text-align:left\" itemprop=\"reviewRating\" itemscope itemtype=\"http:\/\/schema.org\/Rating\"><p><span aria-hidden=\"true\">\u2b50<\/span><span aria-hidden=\"true\">\u2b50<\/span><span aria-hidden=\"true\">\u2b50<\/span><span aria-hidden=\"true\">\u2b50<\/span><span aria-hidden=\"true\">\u2b50<\/span><\/p><span style=\"display: none;\" itemprop=\"worstRating\" content=\"0.5\"><span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span>\n<span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span><\/span><span style=\"display: none;\" ><span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span>\n<span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span><\/span><span style=\"display: none;\" ><span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span>\n<span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span><\/span><span style=\"display: none;\" ><span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span>\n<span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span><\/span><span style=\"display: none;\" itemprop=\"bestRating\" content=\"5\"><span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span>\n<span>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\">\n\t<path class=\"\" fill=\"var(--nv-c-1)\" stroke=\"var(--nv-c-1)\" d=\"M12,17.3l6.2,3.7l-1.6-7L22,9.2l-7.2-0.6L12,2L9.2,8.6L2,9.2L7.5,14l-1.6,7L12,17.3z\" \/>\n<\/svg>\n<\/span><\/span><span itemprop=\"ratingValue\" class=\"screen-reader-text\" content=\"5\">Rating: 5 out of 5.<\/span><\/div>\n\n\n<h1 class=\"wp-block-heading\" id=\"Startup-Investment-Stages\">Table: Startup Investment Rounds &nbsp;<\/h1>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><thead><tr><th class=\"has-text-align-left\" data-align=\"left\"><span class=\"has-inline-color has-nv-c-2-color\"><strong>Funding Rounds<\/strong><\/span><\/th><th class=\"has-text-align-left\" data-align=\"left\"><span class=\"has-inline-color has-nv-c-2-color\">Source<\/span><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong><span class=\"has-inline-color has-nv-c-2-color\">Use of proceeds<\/span><\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><strong><span class=\"has-inline-color has-nv-c-2-color\">Remark<\/span><\/strong><\/th><th class=\"has-text-align-left\" data-align=\"left\"><span class=\"has-inline-color has-nv-c-2-color\">Size, USD<\/span><\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Seed<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Angels\/seed stage VC firms\/accelerators\/qualified investors<\/td><td class=\"has-text-align-left\" data-align=\"left\">Developing product to first sales<\/td><td class=\"has-text-align-left\" data-align=\"left\">Up to 1M<\/td><td class=\"has-text-align-left\" data-align=\"left\">Equity funding<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Pre-Seed<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Startup competitions\/grant programs\/angels\/FFF &#8211; friends-family-fools<\/td><td class=\"has-text-align-left\" data-align=\"left\">Incorporation of a company\/building a prototype\/generating first sales<\/td><td class=\"has-text-align-left\" data-align=\"left\">Non-equity funding<\/td><td class=\"has-text-align-left\" data-align=\"left\">Up to 0.5M<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Round A<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Primarily VC firms\/other qualified investors and sometimes angels<\/td><td class=\"has-text-align-left\" data-align=\"left\">Scaling operations<\/td><td class=\"has-text-align-left\" data-align=\"left\">Equity funding; most often the initial funds come from a qualified investor or a second round of financing exceeding $1M<\/td><td class=\"has-text-align-left\" data-align=\"left\">From 1M to 4M<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Round B&nbsp;<\/strong><br><strong>and Growth rounds<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\">Primarily VC firms\/other qualified investors\/very rarely angels<\/td><td class=\"has-text-align-left\" data-align=\"left\">Scaling operations\/entry into a new market<\/td><td class=\"has-text-align-left\" data-align=\"left\">Following Round A<\/td><td class=\"has-text-align-left\" data-align=\"left\">From 5M to 10M<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h1 class=\"wp-block-heading\">Want to know more about angel investors?<\/h1>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><a rel=\"noreferrer noopener\" href=\"https:\/\/ucluster.org\/en\/blog\/2021\/01\/andriy-zinchuk-a-dynamic-ukrainian-investor-startup-ecosystem-specialist-and-advisor\/\" target=\"_blank\">Tips for starting a Startup<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/ucluster.org\/en\/blog\/2021\/06\/everything-for-the-people-ademrius-a-software-as-a-service-solving-problems-of-doctors-and-patients\/\">Everything for the people. Ademrius: A Software-as-a-Service solving problems of doctors and patients<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/ucluster.org\/en\/blog\/2021\/05\/neyra-ai-bringing-ad-sales-and-usage-data-together\/\">Finding that half of advertising spend that is not effective. Neyra.ai: bringing ad, sales, and usage data together<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/ucluster.org\/en\/blog\/2021\/04\/are-americans-ready-to-buy-from-ukrainian-startups-camdog-video-surveillance-service\/\">Are Americans ready to buy from Ukrainian Startups? Camdog: A video surveillance service for small and medium businesses that stores recordings in the cloud<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/ucluster.org\/en\/blog\/2021\/02\/creating-a-startup-without-any-outside-investment-andcards-an-application-that-automates-the-management-of-coworking-spaces\/\">Creating a Startup Without any Outside Investment. andcards: an Application That Automates the Management of Coworking Spaces<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/ucluster.org\/en\/blog\/2021\/02\/how-much-money-goes-to-food-waste-daily-biobin-an-application-that-rewards-good-environmental-habits\/\">How Much Money Goes to (Food) Waste Daily? BioBin: An Application That Rewards Good Environmental Habits<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/ucluster.org\/en\/blog\/2020\/06\/the-ukrainian-connection-aly-owens-founder-of-dill-seattle-coworking-space\/\">he Ukrainian Connection: Aly Owens, founder of Dill Seattle coworking space<\/a><\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When startups evolve and go from the Seed stage to Growth stage and finally, to Maturity stage, they often seek external funding to accelerate their growth. Not all startups raise external capital. Some decide to finance their growth only from the revenues they generate through the regular course of business. However, most technology startups do&hellip;&nbsp;<a href=\"https:\/\/ucluster.org\/en\/school-of-startups\/startup-funding-rounds\/\" rel=\"bookmark\">\u0414\u0435\u0442\u0430\u043b\u044c\u043d\u0456\u0448\u0435 \u00bb<span class=\"screen-reader-text\">Startup Funding Rounds<\/span><\/a><\/p>\n","protected":false},"author":943,"featured_media":0,"parent":6910,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_crdt_document":"","neve_meta_sidebar":"right","neve_meta_container":"contained","neve_meta_enable_content_width":"on","neve_meta_content_width":80,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"footnotes":""},"class_list":["post-9231","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/PgE4Lp-2oT","_links":{"self":[{"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/pages\/9231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/users\/943"}],"replies":[{"embeddable":true,"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/comments?post=9231"}],"version-history":[{"count":5,"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/pages\/9231\/revisions"}],"predecessor-version":[{"id":9273,"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/pages\/9231\/revisions\/9273"}],"up":[{"embeddable":true,"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/pages\/6910"}],"wp:attachment":[{"href":"https:\/\/ucluster.org\/en\/wp-json\/wp\/v2\/media?parent=9231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}