• Pre-Seed: The very first money a startup raises.

Used to turn an idea into something real (early product, first hires, basic validation). Usually comes from founders, friends & family, or angel investors.

• Seed: The startup has a product and early users or customers.

Money is used to improve the product, find product–market fit, and prove the business model. This is where many startups either take off or stall.

• Series A: The business model works and growth is visible.

Funding is used to scale: hiring teams, improving sales, and expanding to new markets. Investors expect clear traction and a path to sustainable growth.

• Series B: The company is well established.

Funding is used for major expansion, acquisitions, or preparing for an exit (IPO or acquisition). Risk is lower, checks are bigger.

• Series C (and beyond): The company is well established.

Funding is used for major expansion, acquisitions, or preparing for an exit (IPO or acquisition). Risk is lower, checks are bigger.

• IPO (Initial Public Offering): When a private company becomes public and its shares are listed on a stock exchange.

This allows early investors and employees to sell shares, and the company to raise large amounts of capital. At this point, the company must report financials publicly and answer to shareholders, not just founders and investors.