Startup funding typically progresses through several stages, each designed to meet the evolving needs of the business:
Seed Stage: This is the initial phase where the entrepreneur seeks seed capital to develop a prototype or conduct market research. Funds often come from personal savings, family, friends, or angel investors. Early Stage: At this stage, the startup has a working prototype and is looking to scale. Funding usually comes from venture capital firms interested in high-risk, high-reward opportunities. Growth Stage: Here, the business aims to expand its market presence and scale operations. Funding sources can include late-stage venture capital, private equity, or even initial public offerings (IPOs).