It’s relatively easy to have a great idea for a startup business. However, once you have that great idea, it is quite a bit more complicated to bring it through the stages of startup funding to fruition.
Launching a business requires much more than a great idea – it requires discipline, time, dedication, and perhaps most of all, money. And despite the way that the term “angel investor” gets thrown around, it is pretty unlikely that you’re going to just get a major windfall of cash from a generous individual who’s just dying to back your somewhat nebulous idea.
It’s more likely you’ll need to go through the three major stages of growing a business through funds of a variety of sources. Startup funding and corresponding valuation at each stage is typically based on several elements, including the track record of the founder(s) and management team, potential market size, and overall risk.
So it’s time to get real about where you’re actually going to get funding for your startup from, and how you’re going to get it.