Different Stages of Funding

The crucial part of running a startup is money, whether it is yours or somebody else. Even If you have a unique idea and a solid plan to execute, getting an investor for your company can be challenging during the initial days. However, you don’t need to worry about it as there are various avenues to look for. Startup funding at each stage depends on various elements such as track record of the founder, market size, risks involved, etc.

Here are the different stages of funding for you to fathom and conceptualise from where to begin:

Initial Public Offering

It’s the stage when a business decides to sell its shares to the public. The opening share prices of the IPO are set with the assistance of an investment banker who is given a target of selling some particular amount of shares at the specified price, to raise money for the company.

Once your company is listed on the stock exchange, it’s the time to celebrate. It’s not an obligation for businesses to disclose their financial statements. However, they need to submit information related to financial reports stating why they want to go public, to the SEBI. 

The company may consider launching more products after reaching this level or may decide to become an angel investor itself. 

The bottom line

For taking your dream company to the next level, you should be clear of all the stages of funding so that you may decide your business goals accordingly. If you make decisions at the right time, it can be a boon for your business.