Angel investors give start-up companies their first seed money, typically in return for a stake in the business. Entrepreneurs that are unable or unwilling to employ bank loans or other types of capital can receive funding through angel investment.

 Pre Seed-Funding

Prior to seed investment and subsequent phases, pre-seed money is frequently the first phase of startup fundraising. In exchange for stock, investors give businesses the money they need to start creating products at this phase. This phase could follow even earlier funding phases, such initial angel investment rounds or bootstrapping with a business owner’s personal funds.

Since most items aren’t created yet and businesses may only have a prototype, pre-seed fundraising basically entails investing in an idea.

When will your business be prepared to receive pre-seed funding?

• You have evidence or data indicating the possibility of product-market fit, and your minimum viable product (MVP) is beginning to gain traction.
• Your team has the necessary training and expertise.
• You are just beginning the process of onboarding qualified clients.
• The forecast includes revenue.
• You are prepared to create the prototype, but you will require funding to do so.

Seed Funding

The initial round of investment for a firm is known as seed capital; at this phase, the company may simply have a product idea and is still undergoing market validation. This funding typically entails risk on the part of the funding company because the business is still in its early phases and frequently hasn’t yet demonstrated its value in the market. However, high risk also occurs when the startup is undervalued and has the potential to grow and generate significant profits.

Why is seed funding Important?

• It reduces the risk to founder in a new venture
• It covers for funds insufficiency
• It acts as a source of working capital
• It expands a business relationship by bringing strategic partners
• It provides means to scale up and it accelerates growth
• It takes care of your costs right from marketing, hiring to development.

 Pre-Series Funding

The term “pre-series funding” describes the initial phases of a startup’s capital raising, which frequently come before official Series A funding. Usually, its goal is to assist entrepreneurs in reaching benchmarks required to obtain more substantial funding.

Series funding

The successive investment rounds that startups or businesses go through to raise money from investors are referred to as series fundraising. It is an essential component of the startup finance lifecycle, allowing companies to develop and flourish at various phases. Often referred to as Series A, Series B, Series C, and so on, the term “series” is used to categorize investment rounds.

When is your startup ready for series funding?

• You have a viable business plan that can be swiftly expanded and modified to meet your company’s evolving needs.
• Your unit economics is promising.
• You know where your product fits into the current market, but you’re making less money than you can manage with the money you’re requesting.
• You’ve begun attracting clients and know exactly where you need to go to expand your clientele.
• Your compliance forms and legal documents are all current and in order.

Venture Capital Funding

Startups and early-stage businesses with strong growth potential but potentially high risk might get venture capital (VC) funding from investors. Usually, a capital investment is made in return for equity, or ownership shares, in the business. For businesses that might not have access to conventional financing sources, such bank loans, because they lack operating history or collateral, venture capital is essential.

Capital Raising Strategy: aids businesses in creating a thorough capital raising plan that is suited to their unique requirements. To find the best funding structure and possible venture capital investors who share the company’s objectives, we examine the company’s financials, growth prospects, and market positioning.

Investor Identification and Introduction We have a wide range of contacts and connections with venture capital firms. By using these relationships, we can find possible investors who are a good fit for the company’s funding needs, growth stage, and industry. We assist in setting up meetings and facilitating introductions between the management team of the business and potential venture capital firms.

Valuation and Negotiation We support the process of valuing the business and negotiating advantageous terms with venture capitalists. They also offer advice throughout the negotiating process to guarantee the business gets the best terms for the investment.

Deal Structuring We help define the terms, rights, and obligations related to the investment and help choose the best financing option, such as preferred stock, convertible debt, or equity.

Due Diligence and Documentation support companies throughout the due diligence process and helps prepare the necessary documentation required by VC investors. We assist in organizing and presenting Pitch Deck, Financial Model, business plans, Valuation, market analyses, etc. and other relevant information to ensure a comprehensive and compelling investment case. Investment banks also help draft and review legal agreements, term sheets, and other transaction documents to protect the company’s interests.

When is your Startup ready for venture capital funding

At the stage of expansion

if your next goal is to grow your company Getting money from venture capitalists is a smart choice by doing this, you can benefit from their business, financial, and legal knowledge, all of which are typically necessary when expanding a business.

Requirement of strong mentoring

A venture capitalist contributes a wealth of experience, knowledge, and connections. You can use their advice to expand your own network, market your company under their guidance, and eventually take it to new heights.

At the time of competition

A start-up should seek venture capital funding once it has established a significant presence and is likely to encounter competition in the real market In order to survive and provide fierce competition to others.