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Everything You Need To Know About The Startup Funding

Understanding the distinction between these rounds of raising capital will help you decipher startup news and evaluate entrepreneurial prospects

Investors aren’t just altruistic startup entrepreneurial loving business people. Although they may be genuinely interested in the business, as many angel investors are, they ask for a portion of the business in turn for giving money. Before each round, a valuation of the company pie is typically released. Valuations derive from considerations such as management, proven track record, market size, and risk. To grow the pie’s circumference, more than a few slices need to be given away. In fact, most of the slices will be auctioned off for funding. Many small business owners with a big idea would rather have a sliver of a massive pie than the entirety of a bite-sized treat.

Startup valuations derive from considerations such as management, proven track record, market size, and risk. To grow the pie’s circumference, more than a few slices need to be given away. In fact, most of the slices will be auctioned off for funding. Many small business owners with a big idea would rather have a sliver of a massive pie than the entirety of a bite-sized treat.

Please remember that series A, B, and C have nothing to do with the alphabet, rather with the development stage of the companies that are raising capital.

Our friends from The Rest Of Us have created this awesome video that shall definitely help the Startup Entrepreneurs with regards to Everything they Need to Know about Startup Funding! Enjoy!

Written by Abhishek Shah

I'm a self confessed foodie, king of the kitchen, wannabe anthropologist, technology evangelist , curious, inquisitive & experimental entrepreneur at @DigiLands and an adrenaline junkie. Love spending time with my wife & two young children and faulty KitKats that consist purely of solid chocolate.