series a series b funding

Series A and Series B Startup Funding

Startup

The first round of funding is known as the Series A. During this round, the startup business receives funds from a venture capital firm. It is important at this stage that a plan on the development of the business model is made so long-term profit can be generated. At this stage, the investors look for companies that have great ideas and have a strong strategy to turn that idea into a successful, money-making business.

90% of startups fail

90% of Startups Fail

Startup

Startups failing is not a new phenomenon. Numerous studies have been the subject of how and why startups fail. Most studies indicate, that the number one reason for startup failure is: there was no need for the product or service. Making a better product that no one needs is a sure shot way to kill a startup. Interestingly enough, 3 out of the top 5 reasons have to do with financial aspects: running out of money, the competition was quicker or more efficient, and pricing and cost issues.