Startup funding stages explained
Funding stages are conventions, not rules. Companies raise different amounts at each one and some skip a stage altogether. Jump to the stage finder to place your startup.
Section 6 of 10
The eight stages, from bootstrapping to IPO
Funding stages are conventions, not rules. Companies raise different amounts at each one and some skip a stage altogether. See real UK rounds by stage in our UK startup funding data.
Stage 1
Bootstrapping
Building with the founders' own money and revenue from customers.
Who invests: Founders
Stage 2
Pre-seed
Developing an idea, prototype or MVP.
Who invests: Founders, friends and family, angels, pre-seed funds
Stage 3
Seed
Testing the market and building early traction.
Who invests: Angels, seed funds
Stage 4
Series A
Scaling once there is evidence of product-market fit.
Who invests: Usually led by a venture capital firm
Stage 5
Series B
Growing faster and expanding operations.
Who invests: Venture capital firms, often with earlier investors following on
Stage 6
Series C and beyond
Larger expansion, acquisitions and other strategic goals.
Who invests: Later-stage venture capital and growth funds
Stage 7
Growth equity
Funding the expansion of a more established business.
Who invests: Growth equity and private equity funds
Stage 8
IPO
Listing shares on a public stock exchange.
Who invests: Public market investors
Try it with your numbers
What stage is your startup at?
Answer four questions to see your likely stage, who usually invests at it and which section of this guide to read next.
Your stage
Seed
Testing the market and building early traction.
- Who usually invests
- Angels, seed funds
- The term
- Seed explained
Where to go next
- Valuation and dilution calculatorValuation, equity and ownership
- Runway calculatorCash flow, burn rate and runway
- SEIS and EIS planner and market size calculatorUK funding schemes and startup abbreviations
A rule of thumb. Companies raise different amounts at each stage and some skip one.
Last checked . Estimates only, not financial, tax or legal advice: deal terms vary, so check your documents and take advice before you sign. More terms in the startup glossary.