Navigate the 6 startup stages with Adobe Express.
Learn all about the different startup stages and funding options for your small business with our handy guide.
Launching a startup business is an exciting time as you prepare to reveal a fresh product or service to the world.
You might be putting a new spin on an old classic or offering something entirely different. Either way, you’ll have plenty of startup stages to think about as you navigate the early days.
Learn more about your potential funding options and the common stages of a startup with this useful Adobe Express guide.
What is a startup?
A startup is a brand-new business that’s only just finding its feet. It usually has an innovative product or service to sell that could improve or even shake up an existing industry. For example, a software firm with a groundbreaking social media app. Or a food supplier with a fresh take on deliveries.
Navigating the different stages of a startup can be tricky though, with lots of upfront costs to consider. Think materials and kit, marketing tools, record-keeping, brand-building, and workers’ salaries for starters.
As a result, startup founders often aim for quick growth to boost production, forge an identity, and push their business to the next level.
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How do you fund a startup?
Even the brightest startup ideas will struggle to get off the ground without adequate funding. As you put together a business plan, the likes of legal fees, insurance, equipment costs, research expenses, and technology could quickly add up.
These upfront costs may seem daunting at first. But there are lots of financing options and stages of startup funding to consider. For example:
- Business loans. Where you borrow money and pay back interest over time.
- Government grants. Payments which you don’t have to repay.
- Support from family and friends. You may also have personal savings to put towards your business in the early days.
- Investors. Where individuals or groups take a stake in your company, in the hope of making a bigger return in the future. Depending on the arrangement and how you pitch it, they may also ask for a say in key business decisions.
How to bring your startup to life.
6 startup funding stages: what to expect.
Each startup will have different ambitions, growth targets, and timelines. But they’ll often follow a similar journey when it comes to funding. Here are 6 stages of a startup to keep in mind.
1. Pre-seed funding.
At this stage, an entrepreneur is simply laying down the foundations for their business. It’s where they can nail down the purpose of their startup and the target audience, plus any unique selling points (USPs) they have.
As a startup founder, you can consider a range of funding sources during this phase. For example, personal savings or support from your loved ones.
You could also research crowdfunding. This involves raising small sums from lots of different people through a specialist online platform.
2. Seed funding.
This funding stage is all about getting your product or service off the ground. For example, it might cover the launch of a new product, initial marketing efforts, hiring staff, and conducting competitive market research.
You can test out your ideas, check you’re moving in the right direction, and refine your strategy if necessary.
Angel investors are a common funding option at the seed stage. These individuals put money into a company in exchange for an equity stake.
Venture capitalists are another potential option. These private equity investors look for startups with strong growth prospects. Again, they’ll usually take an equity stake in return for their cash injection.
3. Early stage: Series A funding.
This phase is about optimising your company following the initial startup funding stages. It can give you the room to flesh out your business and truly bring your ideas to life.
After launching a successful product, now is the time to develop things further and create a plan for sustainable growth.
Series A is the first large-scale funding round that a startup completes. It usually involves venture capital firms.
Along with a viable product, investors will be keen to see a realistic vision for growth.
4. Growth stage: Series B funding.
By this point, you’ll hopefully have proven your credentials with a successful product, steady stream of revenue, and a solid customer base. So, it’s all about scaling your company even further.
Series B funding can help you to extend your reach into additional markets, boost your market share, and increase your headcount with more specialist roles.
Venture capital firms are again likely to be a key source of funding during this phase.
5. Expansion stage: Series C funding.
Depending on your business, you may not need to go through the more advanced startup stages. For example, Series C funding rounds tend to be for well-established firms that are keen to grow into much bigger businesses – and potentially expand internationally.
This type of funding might help you to tap new markets, expand your products and services, or even to acquire other firms.
Venture capitalists, private equity groups, and sovereign wealth funds could all get involved at this funding stage.
6. Exit stage.
During this final funding phase, you may decide to exit your business and give up control. You could do this through an:
- Initial public offering (IPO). Here, a startup is floated on the stock market, potentially allowing anyone to buy shares in it. The company transfers from private hands to public ownership.
- Acquisition. This is where a larger company buys a startup and its assets. The startup then becomes a legal part of the enlarged group.
A startup’s sale or IPO price is usually based on its valuation. By selling their shares in the business, an entrepreneur can effectively cash in all the time and effort they’ve put into it.
Free startup business template ideas.
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How can Adobe Express help your startup through these different stages?
Whether you’re in the early stages of setting up your startup, or you’re ready to take your business to the next level, Adobe Express can help. You can use our free tools to:
- Build out your business plan. In the early stages of a startup, your business plan is crucial. Not sure where to start? Make the most of free startup business plan templates from Adobe Express and tailor the design to suit your offering.
- Transform your plan into a pitch. Once you have your plan, it’s time to pitch to potential investors. You can use the pitch deck maker to create a custom presentation for any upcoming meetings. Then update and adapt your pitch for future funding stages.
- Present your sales and marketing strategy to key stakeholders. As your startup continues to grow, you’ll need to make sure your shareholders and other stakeholders are kept up to date with your sales strategy. Craft a presentation that showcases your main goals and insights, plus any additional marketing plans to go with it.
- Create your own brand kit for future content. Adobe Express makes it easy for startups to build and create on-brand content. Streamline your content creation process with the One-Click Apply Brand tool, to ensure everything you produce aligns with your brand style and vision.
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