What is series funding ?

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 What is series funding ?

Series funding primary used for startups and high growth businesses, this funding  is mainly used for the growth of the company which maybe in market share or to entre into new market , As far the startups it is used to build protype, hire a right of people or it may be anything related to the startup

So this rising of funds also divided into rounds which also show the growth of the company according to the rounds 

So to understand it deeply let's Dive into the topic 

Hold on a second before that we need to known about types of investors so their will be no problem further 

1. venture capitalists (vc) :- Professional investors or firms that manage other people’s money to invest in startups.

2. Angel investors :- Wealthy individuals who invest their own money in startups.

3. Institutional Investors :- Large organizations like pension funds, insurance companies, and banks.

4. Private equity investors :-  They buy companies, make them better, and then sell them for a profit.

5. Crowdfunding  :- is a way to raise money by collecting small amounts from a large number of people, usually through online platforms.

Now let's get into the topic 

1. Pre seed funding 

Purpose :-

Idea and initial concept phase .funding at this stage helps founders take their first step like  Developing a proof of concept and building minimum viable product (mvp)

Investors:-

 At this stage mostly investor will be within you circle or yourself 

Valuation:- 

At this valuation asked 8s very why because their is high risk in this investment 

2. Seed funding ;- 

Purpose :- 

 Fully MVP development and initial operations are done in this stage  also hiring key employees , refining the product based on the feedback 

Investor:- 

Angel investors, seed stage  venture capitalists and crowd funding 

Valuation:-

From now onwards an official valuation is done based on the potential growth of the startup 

3. Series A Funding  :-

Purpose :-

 Used to optimize the business model , develop the product further more , entering into new markets and scale the operations 

Investors :- 

Venture capitalists firms who show interest in potential growth of the company which also attracts strategic Investors 

Valuation:

According to the records At this stage company values between $10million to the $30 million 

4.Series B funding :-

Purpose :-

 Mainly aimed at expansion and  Development , by expanding their product or servies increasing it's market size and also focusing on the innovation of new product  variety 

Investors :- 

large venture capitalists and sometimes even private equity firms 

Valuation :-

 Basically from $ 30 million to $ 60 million or even higher depends upon the growth  

5.Series C funding :-

Purpose:-  

Large scale growth . For well established company only  this series stage is, it may be to acquire other company, preparing for an ipo or  preparing to entre into new country 

Investors:- 

Private equity firms, hedge funds and large institutions Investors 

Valuation:-

 Often $100 million or more 

6.Series D E and beyond  :- 

Purpose:- 

Final stage  of rising  funds . Company may need additionally funding to prepare for an ipo or to acquire competitors  or to support international expansion  

Investors:- 

Private  equity , hedge funds  and other  venture capitalists who specialize late- stage investment 

Valuation:- 

Start from $100million  and goes upto 1 billion dollars

                

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