Easy as ABC? Navigating the complexities of early stage funding
There’s no such thing as a free lunch in the capital markets and each investment comes with its own terms and conditions.
It’s not so much swings and roundabouts but stacks and waterfalls that high-growth business owners need to be aware of when navigating the alphabet soup of early stage seed and funding rounds. On the face of it, the process appears quite straightforward. Start-up and early stage companies in need of capital to fund innovative product development and growth raise funds on the private markets by selling equity to investors. They generally move through a series of funding rounds, labelled A, B, C and so on, with each one usually raising more money than the last.
But it’s not quite as simple as that. There’s no such thing as a free lunch in the capital markets and each investment comes with its own terms and conditions.
