Introduction

Hi my dear comrades welcome to OopiriFive blogging platform post (19). In this blog post I explore about how startups raise the funds from several people in form of rounds for their startup growth and expansion of business. But before that I need to do a short discuss with you.

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Short Discuss

So now coming to point that in past years ago their no fund raising options for startup ideas because people do not show  interest to make investments in startup ideas as well as the people do not have awareness on startup platforms.

Hence there is a enlist of reasons why the people do not interest for making investments in startup business and those reasons are

1. Lack of knowledge skills on startup.

2. Presence of fear on defaulters due to scam activities on startup.

3. Absence of trust on startup owners from people.

 So Moreover due to these lack of reasons and investments there is no development in startup business platforms.

But now coming to present generation it’s totally changed from comparing to past generation. I think you may get question how it will happen , so don’t worry I am here to explore about these matter

Moving to present scenario the startup founders searching and selecting educated and skilled investors for their raising of funds to their startup and they also share their startup idea to their friends and family members to get support in financial manner.

Along with the investors also inclined where compare to past decades and they were also getting full knowledge on markets.

Additionally the investors are analyzing startup ideas by asking variant questions to startup founders  subsequently the investors make several interview rounds to founders and finalize the project.

After that the investors make decisions and speak out their equity share in startups

So now coming out of short discuss guys there are different types of rounds for startup founders to raise the amounts according to their plans and I will now illustrate those rounds for you .so please read carefully.

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7 Startup Fundraising stages

1.Raising of Self amount.

2. Getting Pre seed round

3.Collecting from seed round

4.Taking funds from series-A

5. Receiving funds from series –B

6.Conduct and collect payments from series-c

7. forward to IPO

1. Raising of self amount

Coming to first stage raising of self amount it means in these phase the startup owners collect amounts from own savings as well as family members and friends along with they make a prototype on their idea where it means creating of MVP(minimum viable product) to show up their confidence in market.

2. Getting Pre-seed round

Forwarding to these stage in these round the founders raise the amount from 5lakhs to 1crore and additionally they present their startup idea in front of angel investors through projector system to getting of funds.

Moreover in this stage the founders make product development and do several test on product performance. So for this assignment they do lot of research to get impress from investors.

3.Collecting from seed round.

Moving to these stage in these phase the startup founders raise the amount among from 50lakhs to 5crores. Because the startup need a lot amount to do lot of works like team building ,beta launch as well as doing of market promotion.

So for activities the startup founder go through incubators ,accelerators and angel investors.

Additionally the investors check the product and study about them and they decide whether the product is fit to market or not it means there is any scope is there or not.by checking all these details and doing analysis they finalize and go to euity to confirm funds to founders to give startup budget.

4.Taking funds from series –A

Coming to these stage the startup officials take funds around 10crores to 50crocres by showing business models ,business operations and their market share in that sector.

These funds they collect from large institutional investors. so by getting these funds the founder show up their customer base data to investors as well as they show consistent growth potential and show profits to institutional investors.

5.Recieving funds from series –B

Jumping into 5th round the startup owners come forward to conduct series-B To receive the funds to raise from 50crores to 100 crores. And this amount they collect from large venture capitalist.

So after getting of huge budget the startup founder make a decision to do large expansion and promote in worldwide market.

Along with the founders show their market growth for venture capitalist and they show annual revenues.

6. Conduct and collect payments from series –C

In these phase the founders come forward to raise the amount around 100 crores to 1000 crores. And these amounts collect from large venture capitalist as well as they collect private equity firms

 Moreover In this stage the founders make a strong move up like global expansions, huge marketing and acquisitions

7. Forward to IPO .

Coming to these phase the founder strongly go through Initial public offer it means

They raise the amount from public in society in the form of IPO where wan to be list in Stock exchange markets like(NSE,BSE).

For these step the startup companies prepare strong reports and complete details about their startup idea and they will submit all financial reports like their profits, losses ,revenues everything whatever to SEBI which approved by central government.

So now after SEBI approval the company gets listed in stock exchange to get funds from public.

Conclusion

so overall coming to conclusion these are seven major enlist points which included under how to raise funds for any startup ideas. Moreover these points are not to depth because these parameters only consider under basic ideas to raise funds for start.

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