Startup funding is the money a new company raises to build its product and grow before it can pay for itself. Most startups raise in stages, from founders, friends and family, then angel investors and seed funds, and later venture capital, often using SAFEs or convertible notes in early rounds.
Startup funding is the money a new company raises to build its product, find customers and grow before it can pay for itself. Most founders combine several sources over time: their own savings, friends and family, angel investors, grants, loans and, for some, venture capital.
On PitchStreet, founders post a short description of their venture and the amount they need. Investors browse those pitches and reach out to the ones that fit.
The usual funding stages
- Pre-seed: the earliest money, often from founders, friends, family and a few angels, used to build a first version
- Seed: money to find product-market fit and early customers, commonly from angel investors and small funds
- Series A and later: larger rounds, usually led by venture capital firms, to scale a business that is already working
- Non-dilutive options at any stage: grants, revenue-based financing, loans and pre-sales
Common ways a round is structured
Early rounds are often done with a SAFE (simple agreement for future equity) or a convertible note. Both let an investor put money in now and receive shares later, when a priced round sets the company's value. A priced equity round sells shares at an agreed valuation today.
Terms such as valuation caps, discounts and investor rights make a big difference to founders. Have a lawyer review any term sheet before you sign.
What to prepare before you raise
- A one-paragraph summary of the problem, the solution and the customer
- Traction to date, even if small: users, revenue, pilots, waiting list
- How much you are raising and a simple budget for the money
- A short pitch deck (10 to 15 slides) and basic financial projections
