Pre-seed, Seed, Series A, B, C. How It Works and How to Get Funding in 2020

For any startup, finance is a key issue. Attracting financing is not an easy task due to the high risk factor and the complex process of launching startups. There is also another problem — finding the right way to work with investors interested in your project.

Knowing how investment rounds are divided and what requirements for startups should be met can help greatly. At each stage, money is attracted for clearly defined tasks, but there are also some limits to financing. Why else is funding divided into rounds? Because it gives investors a clear understanding of what stage a particular startup is at and what tasks it is currently solving.

In this article, we will talk about each of the rounds in detail, including its tasks, opportunities, and “pitfalls”.

How Does Funding Work?

First, it is good to know what venture capital means. Venture capital is money from private investment funds or companies for the development of startups in their very early stages. A venture capitalist receives an equity stake in the company being funded. Venture fund holders often…