Whether you are a startup founder or investor, the investment scenes for startup companies has been evolving rapidly world-wide. How we used to invest or receive investment is very different. The amount of investment, contract structure, company evaluation and other related elements of investment are now defined much more clearly than 10 years ago.
Why there are so many different stages of funding for early-stage investment?
As now starting a scalable and distributing business is now taking over the traditional way of doing business, investment scenes around the world have also changing with new stages of investment to solve the needs of capturing the next Facebook, Airbnb.
Here are possible & different reason
- Type of investor and its way of doing business for investment
- Capturing the next "Facebook" for sustainable capital gain
Common stages in early-stage investment
- Angel round (Friends & Family & Fools - the round of 3Fs)
- Pre-seed round
- Seed round
- Pre-A round
- A round
Reference & Recommended Reading
pre-seed vs seed round by SVSG
Glossary of funding by Crunchbase