Road To Entrepreneurship -Funding for STARTUP
Funding rounds provide outside investors with the opportunity to invest cash in a
growing company in exchange for equity, or partial ownership of that company. if
the company grows and earns a profit, the investor will be rewarded commensurate
with the investment made. Before any round of funding begins, analysts undertake
a valuation of the company in question. Valuations are derived from many different
factors, including management, proven track record, market size, and risk.
Startups first engage in what is known as "seed" funding or angel investor funding.
Next, these funding rounds can be followed by Series A, B, and C funding rounds.
Some basic terms:
Equity: Equity essentially means ownership. Equity represents one's percentage of
ownership interest in a given company. For startup investors, this means the
percentage of the company's shares that a startup is willing to sell to investors for a
specific amount of money.
Lean Startup: The lean startup methodology calls for entrepreneurs to start their
business ventures by searching for a business model and then testing their ideas.
Feedback from potential customers is then used to adjust their ideas as they move
forward. Instead of business plans, lean startups use a business model based on
hypotheses that are tested rapidly. Data does not need to be completed before
proceeding; it just needs to be sufficient. When customers do not react as desired,
the startup quickly adjusts to limit its losses and return to developing products
consumers want. Failure is the rule, not the exception.
Bootstrap: Self-funding, also known as bootstrapping, is an effective way of startup
financing, especially when you are just starting your business.
Incubator: A business incubator is a company that helps solve some common
problems associated with running a startup by providing workspace, seed funding,
mentoring, and training
Accelerator: Accelerators are focused on early-stage startups and scaling a business
while incubators are often more focused on innovation and take up early to
late-stage startups. Accelerator programs usually have a set timeframe in which
individual companies spend anywhere from a few weeks to a few months working
with a group of mentors to build out their business and avoid problems along the
way.
Funding Series:
- Series A Funding: Once a startup makes it through the seed stage and they have some kind of traction — whether it’s number of users, revenue, views, or whatever other key performance indicators (KPI) they’ve set themselves — and they’re ready to raise a Series A round to help lift them to the next level.
- Series B Funding: A startup that reaches the point where they’re ready to raise a Series B round has already found their product/market fit and needs help expanding.
- Series C Funding: Companies that make it to the Series C stage of funding are doing very well and are ready to expand to new markets, acquire other businesses, or develop new products. Commonly, Series C companies are looking to take their product out of their home country and reach an international market.
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Grand projet. Une formation commerciale est toujours nécessaire. Presque tous les hommes d'affaires novices sont confrontés à la question de savoir comment évaluer une idée d'entreprise. Plus ils sont expérimentés, plus leurs projets seront couronnés de succès.
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