Startup Funding Rounds: How It Really Works
Let me demystify this complex, confusing strategy they call:
Yeah, you’ve heard the words thrown around before.
“We’re raising our series B”, and “I’m looking for a pre-seed angel investor” or “We’re gearing up for an IPO”…
They may as well be talking another language, right?
Except that somewhere between those phrases, letters and acronyms is a reliable, rock-solid funding strategy that is PROVEN to work again and again.
It has turned founders into billionaires…
Put CEOs on the cover of Entrepreneur magazine…
And transformed back-of-napkin ideas into living breathing companies.
So let’s cut to the bone and spell out the sequential funding rounds in PLAIN ENGLISH.
- What each funding round means
- How much money you can expect from each round
- Who provides that money
- How to tell which round a business needs next
- Who leads a company through each round
- Why the rounds even exist in the first place!
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If there’s a part of you that feels intimidated because you don’t yet understand all the “CEO talk” (yes, I’m using air quotes here), then don’t worry.
I didn’t either.
Now I could write a dictionary on “corporate jargon” 3-houses-thick and I would never even recommend anyone reads it.
But in those early days, I was beating down doors to find someone — anyone — that could spell out the basics when I was trying to start my first business.
By the end of this video, startup funding rounds will finally make sense.
Drop me a comment if you’re still not sure about anything.
I’d love to hear from you.
Dan Martell has advised more startups than his hometown has people and teaches startup founders like you how to scale. (Get access to all my latest business hacks.) He previously created, raised venture funding for and successfully exited three tech companies: Spheric, Flowtown and Clarity.fm. You should follow him on Twitter @danmartell for tweets that are actually awesome.
Originally published at https://www.danmartell.com on January 4, 2021.