This stage of a startup company is all about laying the foundation for your company. This can include testing and analyzing your startups opportunities. The goal of this stage should be to determine if your business/product can be a solution to a real market problem.
Pre-Seed Stage
This term is used for when your self-fund your startup business and leverage your own financial resources to support your business. This can include turning to friends or family, using your own savings, or tapping into your 401k.
The term is bootstrapping.
This U.S. SEC exemption lets eligible startups raise up to $5M in a rolling 12-month period
through online funding portals.
What is Regulation Crowdfunding
This stage of the startup entrepreneurial path is after you have completed your initial product and market research and proven that there is demand for your product/business. In this stage, the main goal is to validate your startup with a working prototype.
Seed Stage
What is normally offered in exchange for an ownership share or active role in a company by investors when you are beginning your start-up.
Venture Capital.
Under YC’s current standard deal, startups receive $500k: $125k for 7% plus $375k on an uncapped
What is Y Combinator’s $500,000 standard deal?
This stage of startup growth can be known as “Series A”. In this stage your startup has already achieved a first-round venture capital financing. Chances are if you have made it past this phase, your business is likely to succeed.
Early Stage
When you get funding for your start-up business without giving away shares of ownership or a return on money and instead give “gifts” from your company such as special perks.
Crowdfunding.
This metric shows how many months it takes to earn back what you spent to acquire a
customer.
What is CAC payback period?
This stage of the startup entrepreneurial path is one of the final stages. In this stage, you will be looking for more funding and venture capitalist firms to fuel growth for your company.
Growth Stage
This option to gain funding for your startup business allows you to remain in complete control of all operations with the cost of interest.
Small Business Loan.
YC’s financing document designed to replace many convertible notes is this Simple
Agreement for Future Equity
What is a SAFE?
In this final stage, your business is less likely to be labeled as a startup. During this stage you should be venturing into the global market or expanding by offering different products or services in other market segments.
Expansion Stage
This specific type of loan is when a traditional bank thinks your startup business is too risky to lend money too. This allows the bank to take less risk and makes them more willing to give you a business loan.
SBA guaranteed loans
This popular efficiency yardstick says a healthy SaaS company’s growth rate + profit
What is the Rule of 40? Bessemer Venture Partners