An article we liked from Thought Leader Roger Roman of Alliance for SoCal Innovation:

Founder Resource: Navigating the Funding Landscape

NAVIGATING THE FUNDING LANDSCAPE: A GUIDE TO PRE-SEED, SEED, SERIES A, AND SERIES B FINANCING ROUNDS FOR STARTUPS

Starting a company is a journey; just like any journey, it needs a little financial fuel to keep it going. That’s where funding comes in. As a founder, you’ll search for various funding sources to support your startup’s growth. First up is the pre-seed round, followed by the seed, Series A and beyond. Understanding the differences between these funding rounds is key to securing the money your company needs to succeed. So buckle up; it’s time to hit the funding roller coaster!

Pre-Seed

Pre-seed funding– typically the first funding round for a startup– is used to develop a prototype or proof of concept. Typically smaller in size, this funding is essential for early-stage startups just starting to build their product or service. It also helps you get the necessary resources to develop a functional prototype and test their idea. The pre-seed round is the riskiest for investors. Pre-seed funding can come from many sources, including friends and family, angel investors, and crowdfunding campaigns.

Seed

The next funding stage is Seed, which is used to develop the product or service further and build a team. Typically larger than pre-seed funding, seed funding is used to help startups refine their product or service based on...

Read the rest of this article at alliancesocal.org...

Thanks for this article excerpt and its graphics to Roger Roman, Venture Outreach Manager for the SoCal Venture Pipeline Program at Alliance for SoCal Innovation.

Want to share your advice for startup entrepreneurs?  Submit a Guest Post here.