Investment stages and investors classification
Investment stage Typical company
Sources of funds Typical
Seed/pre-seed Idea/prototype Grants, incubators,
Round-A First revenues Early VCs, business
Round-B Expansion, rapid
VC funds $2M-$10M
Round-C Expansion, re-
Growth / Late stage
Round-D Pre-IPO stage Private Equity arms
of large public
Public IPO Everyone $200M+
Financial Investors, based on stage:
What values do financial investors bring?
Outside view and experience
Transparency, structure and overall liquidity
Reputation and introductions
Research and legal support
Further investor marketing
Oh and some money as well
Approaching and marketing your company
Pitching anyone passing by - not for you.
Do proper homework:
Get your deck done nicely
Choose possible investors by country and industry focus
Filter by investment stage
Take a look at their portfolio
Ask someone to introduce, if impossible – track on
conferences, write an email “out of the blue”.
Balance between an auction and a future zoo on your board.