Don't miss out on the latest listings
Subscribe to the Ipleft newsletter
Investor funding allows you to source much needed finance to boost your expansion plans, projects or business. In return for funding, an investor will take a part ownership in your business or project.
DESIGNED FOR GROWTH
Depending on the stage of your business you may need funds for different things. For instance, in the pre-launch phase, companies need finance to secure intellectual property rights, create prototypes and enter the marketplace.
One persons investment can become another persons gain.
It takes 2 minutes to get listed
Pitch to our investors before someone else does
FUNDING RELEASE
There are many stages of funding, from pre-seed funding to Series C.
Each phase of funding carries certain risks but also come with various benefits. For this reason investors may prefer to invest in companies in different stages and will only fund companies in the phase they prefer. They use this technique to manage risk.
One persons investment can become another persons gain.
PRE-SEED
Pre-seed funding helps a start-up with initial costs of starting a business. It is used for the very start of business where the business is just getting off the ground but does not yet have a product or service to sell.
This round of funding can be difficult to obtain as it carries the highest risk. Investors may prefer not to invest in companies seeking this type of funding as they may be risk adverse.
The advantage for investors at this stage, can be that they obtain a higher equity in the company because they have assumed the higher risk.
SEED
Seed funding applies where a startup is entering the marketplace and requires funding to finalise products, to gain traction in the marketplace before income starts to flow and for recruitment. This round of funding can be difficult to obtain.
Again, this round of funding can carry a level of risk and some investors will not invest in this round.
Again, the advantages to an investor are that they can obtain a greater amount of equity for a smaller investment given the risks they assume.
SERIES A
A Series A round (or Series A Funding or Series A Investment) normally refers to a companies first significant round of funding. It generally occurs after the company has seen some traction in the marketplace and has proven the viability of the idea.
This round of funding carries more certainty for an investor and so it is easier for a company to obtain.
Series B
A Series B round (or Series B Funding or Series B Investment) normally refers to a company’s second round of significant funding. It is used to springboard the business into the marketplace and help it expand and develop. At this stage companies are normally well established, have proven and trusted products and services and have been trading for a significant period of time.
Series C
A Series C round (or Series C Funding or Series C Investment) normally refers to a company’s second round of significant funding. It is used to springboard the business into the marketplace and help it expand and develop. At this stage companies are normally well established, have proven and trusted products and services and have been trading for a significant period of time.
This is the safest round of investment for investors given that the company is well established and trading.
FUNDS RELEASE
In the majority of funding rounds, the promised investment is not released unless certain milestones and targets are obtained. For example a company must obtain a particular marketshare before funds are released. If the milestone is not achieved, the release is not made. These are known as traunches. A traunch is one of a series of investments that are made subject to performance targets being met.
Subscribe to the Ipleft newsletter
(C) Ipleft Pty Ltd, Australia, 2022.