These stages are the most important financial aspects of startup funding. Although some other sub-stages also play a role in keeping your startup stable. Still, these are considered the pillars of a business initiation.

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When you step into the world of being a business owner, there is more to it than meets the eye. A startup needs consistency in funding to keep the business above the water, keep your clients and customers happy, and keep throttling forward. Here are the essential stages of funding. 

Self- Funding: 

Also known as bootstrapping, this stage of a startup fund is the first step of setting up your business and putting a somewhat solid foundation on the ground. Self-funding can be done in many ways, but it is done solely by yourself, and the thriving of your business depends on how much you have invested in boosting your business. The initial investment can be your savings, a bank loan, financial aid from family and friends and more. 

Seed Capital: 

Once your business is up and running and in the initial stages, you need to make several tweaks and minor changes to make on your finished products to meet the customer needs and preferences. For this reason, you need funds and this fund is known as seed capital. Seed capital is essential in startup funding because it makes a name for your company or business. These funds can be taken in exchange for services, or the capital can be increased by financial aids and by taking loans. 

Angel Investor Funding: 

Another essential stage of startup finding is angel investor funding. These funds can be mandatory when your small business starts to grow, and you gain employees, market your products, earn good PR, etc. When you opt for angel investor funding, you have to convince the investor with a stellar business proposal and a nicely-researched strategy for getting a good pitch for your business. 

Venture Capital Financing: 

The next stage of startup funding involves the funds when you want to branch out to other businesses, improve customer acquisition and increase product marketing. This fund is known as venture capital financing. These funds are required and only granted to your business when making a profit. Another condition is that your business is at its “peak”. These funds are given from the investors after many questions. Mainly regarding the business venture, its marketing prospects and how you can improve overall. 

Initial Public Offering (IPO): 

This stage is not “final” in the stepping stones of funding a startup, but it is just as important. As the name suggests, Initial Public Offering funds are the funds gained from the public. This is done when the company decides to sell its shares. This only happens in a large time frame. The company needs to be independent enough to have its shares and can be sold publicly. 

These stages are the most important financial aspects of startup funding. Although some other sub-stages also play a role in keeping your startup stable. Still, these are considered the pillars of a business initiation. 

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