Start-ups are known to flaunt their successes with raising funding , as it goes to show the value of their products and services. But what exactly are these Series A funding rounds and seed capital? Small businesses should know the terminology today, as the race to find the next unicorn heats up.
The earliest funding round one can think of is when money is received or invested with no returns in sight. This is the Pre-seeding funding, and is given to simply get a new venture up and going. There is no exchange of equity. The fund can come from one’s own resources as a way to bootstrap the business. It is also the stage where nearly a third of startups fail, as they don’t have enough resources to continue with their operations.
