What is the difference between Pre-Seed, Seed, Series A and Series B funding rounds? Start-up Funding Round Types Explained
What are different types of start-up funding rounds?
There are several different types of funding rounds that a start-up can go through as it grows and develops. Here are some common types of funding rounds:
There are several different types of funding rounds that a start-up can go through as it grows and develops. Here are some common types of funding rounds:
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Pre-seed funding: This is the initial funding that a start-up might raise to cover the costs of developing its concept and building a prototype. Pre-seed funding is typically provided by the founders themselves, family and friends, or angel investors.
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Seed funding: This is the funding that a start-up raises to further develop its product or service and bring it to market. Seed funding is typically provided by angel investors or venture capital firms.
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Series A funding: This is the funding that a start-up raises after it has launched its product or service and is generating revenue. Series A funding is typically provided by venture capital firms and is used to scale the business.
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Series B funding: This is the funding that a start-up raises after it has demonstrated traction and is ready to scale further. Series B funding is typically provided by venture capital firms or strategic investors.
- Series C and beyond: These are subsequent rounds of funding that a start-up might raise as it continues to grow and scale its business. These rounds can be provided by venture capital firms, strategic investors, or other types of financial institutions.
