Not every company should raise money. Investors look for companies that can grow very large, and they expect you to try. If you want a profitable, steady business, revenue, grants and loans may suit you better. If you do want to raise, here's the usual path.
The stages
- 1Bootstrapping, friends and familyYour savings, revenue, and small amounts from people who know you. Gets you from idea to first proof.
- 2Pre-seedOften tens of thousands to around a million, from angels, accelerators and pre-seed funds. They invest mostly in the team and early signs of demand.
- 3SeedTypically several hundred thousand to a few million. Investors want proof: users, revenue or strong engagement, and a clear plan to grow.
- 4Series A and laterLarger rounds from venture funds, based on a working business model and repeatable growth.
Amounts vary a lot by country and sector. Treat these as rough orders of magnitude, not rules.
Who invests
- Angels: individuals investing their own money, often experienced founders. Fast decisions, small amounts, valuable advice.
- Accelerators: a programme plus a small investment for a fixed share.
- Venture capital funds: professionals investing other people's money, aiming for very large returns.
- Public grants and innovation agencies: non-dilutive money, slower but you keep your equity.
Before you raise, know
- How much do you need to reach the next real milestone, plus a buffer?
- How many months of runway will it give you (aim for 18–24)?
- What will you prove with it?
- How much of the company are you willing to sell (often 10–25% per round)?
Raise when you have momentum, not when you're out of money. Fundraising usually takes 3–6 months.