Stage 1. Idea generation
At the first stage, the startup creator is the owner of 100% of the company and forms the basis of the future business.
However, as the project develops, it becomes necessary to expand the infrastructure, attract specialists, strengthen marketing and scale up activities.
Already at this stage, it is important to think over a development strategy and determine who can become a reliable partner or co-founder.
Stage 2. Attracting co-founders and initial financing
Investments are required to implement a large-scale project. It is often impossible to bring a business to a serious level on your own.
At this stage,
- a team of co-founders is formed,
- shares
- are distributed, the company is registered,
- and the structure is fixed in the statutory documents.
It is important to consider in advance the balance of interests of the participants in order to minimize the risks of loss of control over the business.
Stage 3. Attracting potential investors
The company is starting to grow rapidly and needs additional financing for infrastructure development and promotion.
Possible sources:
- business incubators,
- private investors,
- business angels.
At this stage, the company's valuation increases, but at the same time the risk of a decrease in the share of founders increases. Professional support of investment transactions is required.
Stage 4. Investments from venture funds
Venture financing allows you to attract significant capital, but it is accompanied by a significant redistribution of shares.
Further development may follow several scenarios.:
- acquisition by a larger company,
- further growth and preparation for an IPO,
- or completion of the project in the absence of investor interest.
This stage requires strategic management, accurate assessment of the company's value and protection of the interests of the owners.