Financing a startup can be a long, complicated process. If you’re funding your business and don’t have a clue about the investment and process, don’t fret. We’ve broken down every step of the process and what it means for your ownership, to make learning about it as easy as pie. Read on for more info, or jump-to our infographic to see startup funding explained with pie.
While you may typically think of funding as something that’s done all at once, it’s actually often a process that happens in stages as a business grows. The early rounds will typically be financed your savings, family, and loans, while later rounds involve venture capitalists and hedge funds.
It may seem obvious — but it’s important to note that the best way to ensure funding is with a solid idea, and knowing how to present it well. In your first few funding stages, you won’t have much performance data or positive financials to show your potential investors, which means that your idea and character must motivate investors to come on board.
So even if you’re pitching your friends and family, do your research. Create a pitch deck, demonstrate your understanding of the market, and show you have the skills necessary to lead a business towards success. You wouldn’t bake a pie without a recipe, and you certainly can’t start a business without a plan.
infographic by: www.fundera.com