Startup Funding
How startups raise money, what each stage means, and a free place to put your pitch in front of private investors.
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.
- Investor types
- Private Venture Capital Firm (2,699), Private Equity Investment Firm (196), Angel Investor Group (84)
- Top locations
- California (574), New York (214), Massachusetts (132), Ontario (69), Texas (63)
- Stages funded
- Startup (3,046), Early Stage (2,988), Seed (2,820), Expansion (1,038)
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
Frequently asked questions
How do I get funding for a startup with no revenue?
Pre-revenue startups usually raise from founders, friends and family, angel investors and grants. Show evidence people want the product (sign-ups, pilots, letters of intent) and a clear plan for the money.
What is a SAFE?
A SAFE (simple agreement for future equity) is a contract where an investor gives money now in exchange for shares issued later, usually at the next priced round. It is common in pre-seed and seed rounds.
How much should a startup raise in its first round?
Enough to reach a clear next milestone, typically 12 to 24 months of spending, with a buffer. Raising too little forces another round quickly; raising too much can give away more of the company than needed.
Can I post my startup on PitchStreet for free?
Yes. Sign up free, describe your startup and the amount you need, and your profile goes live once it is approved.
Related guides
This guide is general information, not investment, legal or tax advice. Directory figures update automatically. PitchStreet is a network that connects people who need capital with people who have it; it is not a lender, broker or investment adviser.