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Startup funding is the money that new businesses raise to develop their products, grow their operations, and enter the market. It covers expenses like product development, marketing, hiring staff, and other costs needed to get the business off the ground.
Synonyms: startup financing, startup capital, new business funding, early-stage funding
Startup funding usually comes in stages, starting with small amounts from founders, friends, or angel investors. As the startup grows, it may seek larger investments from venture capitalists or other investors in rounds like Series A, B, and C. Each round aims to provide enough capital to reach the next milestone.
Startups often begin with personal savings or money from friends and family. After that, they might get seed funding from angel investors or early-stage investors. Venture capital firms typically invest in later rounds when the startup shows potential for significant growth.
Without funding, startups struggle to build their products, hire the right team, or market their services effectively. Funding provides the resources needed to turn ideas into viable businesses and compete in the market.
