What are Startup Stage ?
The main stages of each startup
All startups has very well known stages, those are the most common:
- 1.Pre-Seed Stage: This is the very earliest stage of a startup, where the founder(s) are still developing the idea and trying to validate the business model. At this stage, the startup may not have a product or service yet, and is typically self-funded or funded by friends and family.
- 2.Seed Stage: Once the founder(s) have validated the business model and have a prototype or MVP, they can seek seed funding from angel investors, seed-stage venture capital firms, or crowdfunding platforms.
- 3.Early Stage: At this stage, the startup has a product or service that is ready for the market and is in the process of building a customer base. Funding at this stage typically comes from angel investors, seed-stage venture capital firms, or early-stage venture capital firms.
- 4.Growth Stage: At this stage, the startup has gained traction and is in the process of scaling its operations. Funding at this stage typically comes from venture capital firms or private equity investors.
- 5.Expansion Stage: At this stage, the startup is focused on expanding into new markets or verticals. Funding at this stage may come from venture capital firms or private equity investors.
- 6.Maturity Stage: At this stage, the startup has become an established company and is generating significant revenue and profits. The focus is on maintaining growth and expanding into new markets. Funding at this stage may come from public markets through aninitial public offering (IPO) or from mergers and acquisitions.
It's worth noting that some startups may go through additional stages, such as the Bridge or Mezzanine Stage. The Bridge Stage is a stage between the early and growth stages, where a startup may need additional funding to bridge the gap between the two stages. The Mezzanine Stage is a stage between the growth and maturity stages, where a startup may need additional funding to support its expansion efforts.
Additionally, some startups may not progress through all of these stages or may progress through them at different rates. The timeline and milestones can vary depending on the industry, business model, and other factors. It's also possible for startups to experience setbacks or pivots along the way, which may require them to revisit earlier stages in order to reassess their business model and strategy.