How Startup Funding Really Works From Conception to IPO [Infographic]


Taking the plunge to fund your start-up can be a scary prospect.


Fundersandfounders.com’s Anna Vital breaks it down for you in the following infographic “How Startup Funding Works.” Startup funding is a multi-step process, beginning with the “Idea Stage,” which involves just the founder, all the way to the IPO (Initial Public Offering) stage, which includes the founder, his or her partner, family members, the angel investor, the option pool, the venture capitalist, and the first employee. As the stages progress, the amount of people and entities involved increases, and there is dilution along the way. As each new entity is introduced, the infographic defines who they are, what they do and how much you can expect them to take.



About the author: Cassandra Baim

Cassandra Baim is a recent graduate of Syracuse University, now living in Brooklyn, NY. While earning her degree in English, she worked on the editorial staff of a campus magazine and participated in two shows with the university’s radio station. She is a copyediting intern for AlleyWatch and enjoys music, books, crossword puzzles and a strong cup of coffee.

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