Lesson 17: Guide To Startup Funding
9 min.
Do you know who are the stakeholders in the startup ecosystem? Find out what do all the startup terms mean and learn who has the money and how to get it.
Lesson 17.1
Startup Funding
Understand about the different types of funding available and the criteria to qualify for the funds. Learn about the startup financial terms and be ready to speak like an investor!
9 min.
Lesson Notes
Seed Level – Funds used to incorporate a company (Less than $1M)
Series A – Higher ticket size (approx $1M)
Series B
Series C
Angel Investors – Wealthy individuals who usually had sold their own startups and are looking to invest in new ones
Venture Capitals – An organization that invests money in startups from their own pool of investors
With each investment round, your company’s valuation will likely increase but bare in mind that you will be further diluting your shares.
Stock Splitting – The process of converting each share into multiple shares
Share vesting – at the very beginning each founder gets his or her full package of stocks at once to avoid getting taxed for capital gains; but, the company has the right to purchase a percentage of the founder’s equity in case he or she walks away.
Exit – Initial Public Offering or selling to a bigger compan