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🏃‍♂️ Founder's Guide to Startup Funding

🏃‍♂️ Founder's Guide to Startup Funding

👉 Essential tips and tools to nail your next funding round.

Egemen Eres
January 22, 2025 • Estimated Reading Time: 7 minutes

👋 Hi there - it’s Egemen. Thanks for reading Scalable.

Funding.

One of the biggest challenges in building a startup.

Whether you’re bootstrapping, asking friends and family, or looking to get that angel investor or venture capitalist on board, you eventually need to check this box.

Today, I’m sharing a guide I’ve found this week to help you through the journey.

Here’s a snapshot of what’s on the menu today:

💡 Spotlight: Superhuman

🧠 Deep-Dive: The Funding Life Cycle

🗺️ Method: Funding Phases

⚾️ Catch: AI Survey

☝️ Scaled This Past Week: Sereact

💡 Spotlight: Start the Year Ahead

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Superhuman helps founders and executives turn the inbox into a place of progress, not frustration.

Designed for speed and clarity, Superhuman gives you back your focus. You’ll spend less time buried in admin and more time building, strategizing, and leading.

Start the year inspired.

Try Superhuman free for one month and see how much further your email can take you.

Get started now.

🧠 Deep-Dive: The Funding Life Cycle

From the earliest stages of bootstrapping to pitching venture capitalists, the journey is filled with decisions that can make or break a startup.

Understanding the funding life cycle, exploring available options, and preparing effectively for each stage are essential steps in navigating this complex process.

source: Standard Ledger

The funding life cycle breaks into key stages, each with its own sources and strategies:

Early days: Bootstrapping, friends and family, or bank loans. These help you get started but can be limiting.
Scaling up: Angels, venture capital (VC), and accelerators bring big money and expert advice but may cost equity.
Non-dilutive options: Grants, R&D tax incentives, and crowdfunding. These can be lifesavers but need time and effort to access.

Before you ask anyone for money, make sure you’ve done your homework:

Validate your idea. Does it solve a real problem people will pay to fix?
Keep your structure clean and simple—investors hate messy setups.
Build a clear financial plan. Know your numbers and be ready to explain them.
Practice your pitch. It needs to be short and sharp.

Nail your pitch, know your numbers, and stay flexible. Once the funding comes in, use it wisely, keep investors in the loop, and adapt as your startup grows.

🎙️ Working on a startup? Grab some time with me.
Tell me what’s going well - or not so well. I’m here to help.

🗺️ Method: Funding Phases

I’ve been browsing through resources recently, I’ve come across Standard Ledger’s Funding Guide, you should definitely check it out.

Here’s a quick snapshot of the most common phases, without getting lost in terminology.

Phase	Description	Typical Funding Sources	Key Considerations
Early Stage	Initial steps to develop your idea and build an MVP.	- Bootstrapping - Friends & Family - Bank Loans	- Start small and stay lean. - Keep valuations realistic for future investors.
Growth Stage	Scaling your team, launching products, and acquiring customers.	- Angel Investors - Venture Capital (Series A) - Accelerators	- Be ready to give up equity. - Prepare a solid pitch and financial plan.
Scaling Stage	Expanding operations, entering new markets, and optimizing for profitability.	- Venture Capital (Series B, C) - Strategic Partnerships - Private Equity	- Show strong metrics and market traction. - Focus on scalability and operational efficiency.
Alternative Funding	Non-dilutive options that provide financial support without giving up equity.	- Grants - R&D Tax Incentives - Crowdfunding	- Research eligibility and application requirements. - Match funds may be required for grants.
Later Stage / Exit	Preparing for an IPO, acquisition, or large-scale private investment to secure long-term sustainability.	- Late-Stage VC - Public Markets (IPO) - Mergers & Acquisitions	- Build a clear exit strategy. - Align with stakeholders on long-term goals.