The 5 stages of funding

Raising capital for your start-up is—in most cases—necessary, but it can get quite confusing. Who are the best people or entities to raise money from, and what is the best way to go about it? There are many stages of a start-up, and many different stages of fundraising that go with it.

You might have heard terms like seed investing, angel investors and venture capitalists, but when you are trying to compare them and see which option is right for you, there are a few things you need to keep in mind. To start with, understand your project needs, see which investors are best for the success of your start-up and build a strategy to approach them and pitch your project.

Whether you are thinking about raising your very first bit of funding, or are already part of a more mature start-up, it is crucial to know the difference between each stage. The following article explains these differences between financing methods in detail, which will give you more clarity and help you understand the best option for you.