The progressive steps in funding a new startup generally look like this:
Friends & Family/Equity Crowdfunding
Series A (Angel Investors)
Series B (Private Equity/Venture Capital)
Series C (Regulation A+/Exit)
Series C/D (Public Offering)
This post will evolve as more thoughts, comments and questions come along. There’s plenty to say at the outset, but given the fluidity of the funding process, there’s a need to revise and elaborate on the steps you can take for successfully funding your business.
By fluidity, one thing I mean is that the steps are most likely to follow in the order I’ve described above – but not necessarily. For example, you may be able to fund your company without bootstrapping but it should never be taken for granted. In fact, it should be anticipated with most, if not every business.
Also, you may not need a donations crowdfunding round; the F&F and Series A rounds may not both be necessary, and may not necessarily follow in the above sequence (although once you have a Series A round, whatever it looks like, you’ve pretty well established the general course of the unfolding of your company’s equity scheme), and it’s easy for a Regulation A+ offering – if one is to be done – to step into the place of the traditional Series B round as well.
We’ll continue to evolve this discussion on the stages of fundraising for your business in tandem with exploring other aspects of each stage of finance in your business in the coming days.
FLA-21 was designed to advise startups and entrepreneurs in raising capital in funding the goals of their businesses and business ideas!