We all know that there is a series of funding rounds in startups’ lifecycles, but so far there are many debates on how to divide and define each phase of the development phases of startups. Some like to divide them this way
But in general, there are three main funding stages the startup goes through starting from the idea
It starts with the ideation stage, the whole journey starts with an idea, but once the business and the product-building is started you will find yourself in this category.
This funding stage or round is for early-stage startups that are still developing their minimum viable product, aka (MVP). Also known as the prototyping stage, the startup goes through this level to initiate the building of its product and to ensure and maximize its future fundraising opportunities through building the core team, testing and getting the feedback to move to the next round positively and properly, and prepare for future stages beyond the prototype.
The naming of each stage depends on the progress made in the development of the startup
During this stage the company must complete a complex transition: from a company with a great offering of scalability to a company with a great offering that is rapidly and predictably scaling. At this stage, the company should have a working product, a proven product ROI, and paying reference customers. There might be a sales team, but it's not that advanced. The company at this stage could dramatically scale revenues.
Series B and C
Series B and C are not much different from series A as they're considered to be the following rounds of financing for a business by private equity investors or venture capitalists.
Series A, series B, and series C