The Startup Money Hunt: When Entrepreneurs Bring In Investors (Infographic)
Giving away portions of the company you poured your blood, sweat and tears into may be painful. But, as an entrepreneur, selling equity in your startup for cash can be financially beneficial.
Many successful startup entrepreneurs follow a well-worn series of stages in their quest for funding from a first friends-and-family round, moving on to a seed investment and later a venture capital investment. As a business grows and becomes more successful, investors often become willing to invest greater sums in exchange for increasingly smaller amounts of equity.
The infographic below, from San Francisco-based startup community organization Funders and Founders, breaks down the funding path of a successful entrepreneur, from idea to initial public offering.
Entrepreneur Editors' Picks
-
These Co-Founders Are Using 'Quiet Confidence' to Flip the Script on Cutthroat Startup Culture and Make Their Mark on a $46 Billion Industry
-
My 7-Year-Old Daughter Started Selling Eggs. Here's What She Taught Me About Running a Startup.
-
Why You Need to Become an Inclusive Leader (and How to Do It)
-
Career Transitions You Can Make in Your 40s and 50s
-
Billionaire Naveen Jain Is an Expert at Disrupting Fields He Has No Experience In. His Secret Sauce for Building Multi-Million Dollar Companies? 'You Have to Come as Naive.'
-
4 Principles to Develop Next-Level Leadership at Your Company
-
This Filipino American Founder Is Disrupting the Beverage Aisle by Introducing New Flavors to the Crowded Bubbly Water Market
