Pak Launch Event 2024

Startup funding typically progresses through several stages, each with distinct characteristics and funding sources. Here are the main stages:

1. Pre-Seed Stage

• Description: The earliest phase of funding, often before the startup is fully operational. It's used to develop the initial idea, conduct market research, and create a minimum viable product (MVP).
• Sources: Founders' personal savings, family and friends, angel investors, and small grants.
• Amount Raised: Typically ranges from $10,000 to $250,000.

2. Seed Stage

• Description: This stage focuses on validating the business model and scaling the MVP. Funds are used for further product development, market research, and initial marketing efforts.
• Sources: Angel investors, seed venture capital firms, crowdfunding, and early-stage venture capital firms.
• Amount Raised: Typically ranges from $100,000 to $2 million.

3. Series A

• Description: The startup has a proven product-market fit and is looking to scale its operations, increase revenue, and expand its user base. Funds are used for optimizing the business model, marketing, and hiring key team members.
• Sources: Venture capital firms, angel investors, and sometimes strategic investors.
• Amount Raised: Typically ranges from $2 million to $15 million.

4. Series B

• Description: At this stage, the startup is focused on scaling the business further, expanding into new markets, and increasing market share. Funds are used for large-scale marketing campaigns, expanding the team, and entering new markets.
• Sources: Venture capital firms, late-stage VCs, and private equity firms.
• Amount Raised: Typically ranges from $10 million to $50 million.

5. Series C and Beyond

• Description: These rounds are about scaling the company globally, acquiring other companies, and preparing for an initial public offering (IPO) or acquisition. Funds are used for significant business expansion, infrastructure development, and potential acquisitions.
• Sources: Late-stage venture capital firms, private equity firms, hedge funds, and corporate investors.
• Amount Raised: Typically $50 million and above.

6. Mezzanine Financing / Bridge Financing

• Description: This stage is used to prepare the company for an IPO or acquisition. It provides the necessary funds to cover any gaps in funding before the final liquidity event.
• Sources: Private equity firms, hedge funds, and sometimes existing investors.
• Amount Raised: Varies widely depending on the needs of the company.

7. Initial Public Offering (IPO)

• Description: The company goes public by offering shares for sale to the general public. This stage is used to raise significant capital to fuel further growth and provide liquidity to early investors.
• Sources: Public investors through the stock market.
• Amount Raised: Can range from tens of millions to billions of dollars.

8. Post-IPO

• Description: After going public, companies may still raise funds through secondary offerings or by issuing debt. Funds are used for further expansion, R&D, or other strategic initiatives.
• Sources: Public investors, institutional investors, and debt markets.
• Amount Raised: Varies based on the company's market valuation and financial needs.

Each stage of funding has different goals and attracts different types of investors, progressively moving from personal and small-scale investments to large institutional funding and public markets. MAle it compuslaro