Startup funding is any cash or equity capital used to launch and grow a new business. There are many options for startup funding, including self-funding with personal savings or a business loan, crowdfunding, angel investors and venture capital firms. Some startups also choose to join accelerator programs to get early funding and mentorship. Choosing the right startup financing depends on your company’s stage of growth, as each funding stage brings with it different requirements and expectations.
For example, at the seed stage, it’s important to have a solid plan for developing your product or service and a clear understanding of your market opportunity. At the Series A stage, investors want to see more substantial evidence of a business model and revenue traction than they saw in the seed round. At the Series C and beyond stages, investors look for a clear path to liquidity through an IPO or acquisition.
While it may be tempting to hire a full-time employee or expensive contractor, it’s more cost-effective and less risky to offer skilled contributors equity in exchange for their work. Using tools like Carta and Pulley allows you to track equity grants professionally, even in the early stages of your business.
Keeping your financials organized is essential for startup success. With tailored dashboards that are always up-to-date, you can easily show investors your startup’s financial health and reassure them that you’re prepared to scale and manage growth effectively.