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Funding a Startup - Coggle Diagram

- - - - Core Employees: You need to pay key staff who are vital to building and growing your prototype.
      - Equipment: Funding helps purchase necessary technology and software.
      - Licenses: You may need money to secure intellectual property rights.
      - Office Space: Renting or maintaining a workspace requires financial resources.
- - - - Seed Funding: Initial minimal funds, often provided by angel investors.
        
        Start-Up: Early-stage funding from venture capital (VC) firms for marketing and development.
        
        Growth ("Series A"): Larger investment ($1-2M) for preferred stock to support growth.
        
        Second Round: Additional funding for a successful company that isn’t yet profitable.
        
        Expansion ("Mezzanine"): Investment given to a newly profitable company for further growth.
        
        Exit/Bridge: VC firm sells stock once the company matures and is ready for exit.
- - - - Ownership Equity: A percentage of ownership in the company, indicating the company’s value (e.g., $10k for 5% stock implies a $200k valuation).
      - Convertible Debt: Options to purchase stock in the company at a later date.