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The first investment of money often sourced from personal savings, friends and family.
Audience – Friends and family
Expectations – Trust you will use the money well and that it is returned on an agreed date
Risk for Investors – The risk of losing investment is 66.2% – 72%
Average deck size – 14 slides
Often sought by start-ups who have received Seed Capital, they are in business but not making profit. This is the first round of VC financing and the first time you offer ownership outside your company.
Investment here can be difficult due to the high risk nature of a new product or service. Investors take common stock in your company.
Audience – Firms with a portfolio for investors and are aware of high risk investments
Expectations – Their investment will cover the salaries of people involved and will aid in market research. It’s also expected that the finalization of your product/service will be completed and launched in the industry
Risk for Investors – The risk of losing investment is 53%
Average deck size – 16 slides
The second round of financing from VCs when your company has reached agreed milestones in developing the business. This round of funding is to take your company to the next level. Series B investors typically pay more because the risk is lower than perceived during Series A.
At this time investors take preferred stock over common stock in your company.
Audience – Firms with a portfolio for investors interested in companies showing good success
Expectations – The company will be built up to face competitors and achieve a market share
Risk for Investors – The risk of losing investment is 33.7%
Average deck size – 22 slides
Businesses seeking Series C funding are already quite successful. This funding is to help develop new products, expand into new markets or acquire other companies or competition. This round is all about scaling the company and making it grow quickly and successfully.
Investors are looking to inject capital into a truly successful business in an effort to receive more than double the amount in return.
Audience – Firms with a portfolio for investors preparing an exit before IPO
Expectations – Developing new products, expand into new markets and scale
Risk for Investors – The risk of losing investment is 20.1% – 13.6%
Average deck size – 21 slides
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