The ABCs of Venture Capital

The ABCs of Venture Capital

July 12, 2019

When you are starting out, Entrepreneurs are usually funded by friends and families. Or maybe, you may even have some Angel Investors who really see a big opportunity in your startup. At this stage, venture capitalists call it seed financing. The analogy is that you at are the earliest stage in becoming a big, strong, mature tree. Most startups in high-growth mode will eventually need to get more than seed financing and will need to get to the next stage of venture capital financing fast.

This next stage of venture capital financing is called Series A. The following rounds are named alphabetically as Series B, C, D, etc.. There are lots of great information on the Internet about Venture Capital.  This is high level information summarized from Jack Preece's, at Tech Nation, article titled, "How to: prepare for Series A."

Step 1: Write a business plan
Step 2: Identify suitable investors
Step 3: Get paperwork in order
Step 4: Reach out to investors
Step 5: Narrow down the list
Step 6: Engage lawyers

This article is a great primer and 2 minute read.  According to Preece, the bottom line is this "Series A is about building a scalable business for the first time. You’ll need to show evidence that you’re up for the task and that you have huge growth potential that returns a whole funds capital."

Are you ready for Series A financing?  Let us know your thoughts in our comments section or forum.

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