Indonesia’s startup business for the past year, starting with the emergence of new startups also some of old one that got funding and launched new features. Then, some startups choose to merge with other companies. During this period many startups received fresh funds from investors. Below 101 way how to get startup funding in case of raise business.
Stages or levels of funding can be one aspect of measuring the success of a startup company. The higher funding stages obtained by startup companies, meaning that the more proven the business has good prospects. Because investors want to entrust money into the startup.
In general, there are three stages of startup funding:
Not all startups can get investors who are directly interested in disbursing money for their business models. So, often the startup founders must use the resources they currently have. This stage is called Bootstrapping.
2. Seed Funding
Seed funding is the initial stage of funding that startup companies get. Seed funding is usually used by startups to prove that the business idea can run before searching and getting the next stage of funding. The funding for round startup seed in Indonesia alone ranges from Rp 500 million to Rp 2.5 billion.
The range of the size of the investment funds obtained depends on the costs required by the startup, such as marketing costs, salaries, offices, and others. As for the initial funding sources, these usually come from family, angel investors or early stage venture capital who focus on providing initial stage startup funding.
3. Series A, B, … Funding
After the seed funding stage, the company will usually go to the A-series, B, C and seter stages. At this stage, startup companies are ready to receive funding from Venture Capital. The amount of money received at this stage is usually far greater than the seed stage. In this stage, startup companies will offer shares as a reciprocal of money received from Venture Capital.
Venture Capital is a company that collects funds from various sources, either from individuals or groups. The funds they collect will be channeled to startups or startup companies that they feel can benefit them. As a reciprocal, Venture Capital will get rewards in the form of shares from the startup or startup company.
So, are you ready to look for your startup funding?