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Fund	
  raising	
  rounds	
  in	
  startups	
  
                                  Amount	
  of	
  Funding	
  
                                                                           When	
  a	
  startup	
  raises	
  money	
  it	
  0es	
  the	
  amount	
  of	
  money	
  being	
  raised	
  with	
  0me,	
  
                                                                           number	
  of	
  new	
  employees	
  and	
  other	
  related	
  costs.	
  A	
  startup	
  should	
  raise	
  a	
  round	
  for	
  
                                                                           a	
  period	
  of	
  0me	
  between	
  12-­‐18	
  months.	
  The	
  other	
  variables	
  (No.	
  of	
  new	
  employees	
  
                                                                           and	
  other	
  costs)	
  are	
  highly	
  unpredictable	
  and	
  dependable	
  on	
  the	
  performance	
  of	
  the	
  
                                                                           startup.	
  Moreover,	
  	
  the	
  idea	
  will	
  most	
  probably	
  change	
  drama0cally	
  during	
  the	
  startup	
  
                                                                           life	
  and	
  will	
  end-­‐up	
  being	
  something	
  completely	
  different	
  than	
  the	
  ini0al	
  idea.	
  


                                                                                                                                                               Growing	
  Stage	
  	
  
                               US$300M	
                                                                                                              •  Most	
  of	
  the	
  money	
  is	
  
                                                                                                                                                         spent	
  in	
  acquiring	
  
Private	
  Equity	
             Series	
  C,D	
                                                                                                          new	
  customers	
  
Late	
  stage	
  VCs	
  
                                                                                                          Building	
  Stage	
                         •  Building	
  the	
  team	
  to	
  
                                                                                                                                                         run	
  the	
  business	
  
                                 US$10M	
  
                                                                                                 •  The	
  funding	
  is	
  spent	
  in	
  
Angel	
  group	
                                                                                    building	
  the	
  product	
  to	
  
Early	
  stage	
  VCs	
        Series	
  A,	
  B	
                                                  be	
  able	
  to	
  support	
  a	
  
                                                                                                    bigger	
  base	
  of	
  
                                                           Searching	
  stage	
                     customers/users	
  
                               US$100K	
               •  Customer	
  discovery	
  
Angel	
  investors	
  
                                                       •  Changing	
  and	
  
Incubators	
                   Seed	
  stage	
            modifying	
  idea,	
  
Family	
  and	
  friends	
  
                                                          product	
  and	
  business	
  
Bootstrapping	
  
                                                          model	
  
                                                                                                                                                                                                       Time	
  
                                 US$20K	
  
                                                                                    3-­‐6	
  months	
                                    18-­‐	
  24	
  months	
                            3-­‐5	
  years	
  
                                                                                                                                                                                                        1	
  
     Done	
  by	
  Abdullah	
  alshalabi	
  –	
  ashalabi7@gmail.com	
  

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Fund raising rounds and stages

  • 1. Fund  raising  rounds  in  startups   Amount  of  Funding   When  a  startup  raises  money  it  0es  the  amount  of  money  being  raised  with  0me,   number  of  new  employees  and  other  related  costs.  A  startup  should  raise  a  round  for   a  period  of  0me  between  12-­‐18  months.  The  other  variables  (No.  of  new  employees   and  other  costs)  are  highly  unpredictable  and  dependable  on  the  performance  of  the   startup.  Moreover,    the  idea  will  most  probably  change  drama0cally  during  the  startup   life  and  will  end-­‐up  being  something  completely  different  than  the  ini0al  idea.   Growing  Stage     US$300M   •  Most  of  the  money  is   spent  in  acquiring   Private  Equity   Series  C,D   new  customers   Late  stage  VCs   Building  Stage   •  Building  the  team  to   run  the  business   US$10M   •  The  funding  is  spent  in   Angel  group   building  the  product  to   Early  stage  VCs   Series  A,  B   be  able  to  support  a   bigger  base  of   Searching  stage   customers/users   US$100K   •  Customer  discovery   Angel  investors   •  Changing  and   Incubators   Seed  stage   modifying  idea,   Family  and  friends   product  and  business   Bootstrapping   model   Time   US$20K   3-­‐6  months   18-­‐  24  months   3-­‐5  years   1   Done  by  Abdullah  alshalabi  –  ashalabi7@gmail.com