Start-ups go through various funding stages as they grow and develop their business. Each stage has its own set of characteristics, and the type of funding that is typically sought at each stage can vary.
Seed Stage: This is the earliest stage of a start-up, where the company is still in the idea or prototype phase. Funding at this stage is typically sought from friends, family, and angel investors. The amount of funding needed at this stage is relatively small, typically in the range of $50,000 to $500,000.
Early Stage: This is the stage where the start-up has a functioning product or service and is starting to generate revenue. Funding at this stage is typically sought from venture capitalists, angel investors, and seed funds. The amount of funding needed at this stage is typically in the range of $500,000 to $5 million.
Growth Stage: This is the stage where the start-up has a proven business model and is scaling up its operations. Funding at this stage is typically sought from venture capitalists and private equity firms. The amount of funding needed at this stage is typically in the range of $5 million to $50 million.
Expansion Stage: This is the stage where the start-up has a significant market share and is looking to expand into new markets or acquire other companies. Funding at this stage is typically sought from private equity firms and strategic investors. The amount of funding needed at this stage can be in the range of tens to hundreds of millions of dollars.
Exit Stage: This is the final stage of a start-up, where the company is sold or goes public. Funding at this stage is typically not needed, as the company has already achieved significant growth and profitability.
It’s worth mentioning that this is not a definite path for every startup, some may choose to raise more funds in early stages while some may choose to bootstrap or stay in one stage for longer. The type and amount of funding sought at each stage can also vary depending on the specific needs of the start-up and the industry it operates in.
If you are a space entrepreneur, funding and sales resources are described in this article Funding and Sales Resources for Space Entrepreneurs.