By the startup phase of company development, you’ve proved that your idea is feasible and that you have a credible business model to deliver the product or service to an attractive target market. For the most part, the business has no or minimal revenue at this stage.
However, prospective customers and/or distribution partners have indicated their willingness to test the product and purchase it if it works as intended when ready for commercial shipment.
At this point, you’ve lowered the venture’s risk by achieving concept-stage milestones and you have identified your specific financing needs ($500,000K to $2 million) for the next stage.
The funding received in the start-up phase will be used to:
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Canada’s Venture Capital& Private Equity Association. Retrieved April 19, 2009, from www.cvca.ca.
National Venture Capital Association. Retrieved April 19, 2009, from www.nvca.org/def.html.
National Angel Organization. Retrieved April 19, 2009, from www.angelinvestor.ca.