Startup Funding Espresso -- Standard Raises by Stage

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. When I ask startups how much they are raising for investment, they often quote their total raise for the life of the startup. We then talk about breaking the raise into smaller rounds so the founder doesn't have to spend too much time on the fundraise process. Here's some guidance on how to breakdown your startup fundraise into tranches or what some call rounds. Family and Friends funding: $10K to $100KThis helps set up your legal entity, intellectual property, and basic prototype. Pre-seed: $250KThis raise is for the initial research and beta product development. Seed: $500K to $750KThis raise is for building out the product and closing initial customers. Seed +: $500K to $750KThis raise is for growing the sales and establishing repeatable sales and marketing processes. Series A: $1.5M to $3MThis raise is for growing your sales up past the $1M annual revenue. Series B: $5M to $15MThis raise is for growing your sales up past the $3M annual revenue. If you raise too much money too early in the life of your startup, you will find yourself giving away too much equity so it's important to raise in stages. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let's go startup something today.-----For more episodes from Investor Connect, please visit the site at: http://investorconnect.orgCheck out our other podcasts here: https://investorconnect.org/For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected]