Stages of Raising Capital for a Business
Photographer: William Iven | Source: Unsplash Have you thought about raising capital for your business, but the process seems daunting? Your instinct is to secure a bank loan, but this may not be an option for you because banks want loans secured by a personal asset. You will need to seek capital from other people or companies. There is a process that every scalable business goes through to raise money, which I will explain here for you. Typically at the beginning of your business journey, a lot, if not most of the funding is coming from you or your loved ones. This initial funding allows you to get the business off the ground, create some marketing materials, and secure sales to show investors. After the Friends and Family Round, which is self-funding and small investments from friends, family, mentors, and a proven track record, you are ready to start a seed round. DEVELOPMENT STAGE Seed Round: A seed round refers to the initial round in which a few investors, typically angel in...