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What are the main investment phases of startups?


Phase 4. Online investment platforms

Phase 4. Online investment platforms

The Internet has opened its eyes completely to both investors and companies seeking new investment funds . Online investment platforms have meant a before and after for both parties.

Through these platforms, the new startups can upload their projects and request financing to continue forward. Normally, they offer capital in the form of interest to those who decide to help them.

These platforms usually accept only those companies that demonstrate having a solid business that can truly continue to grow with some funding. Depending on the risk of the operation, the interest received by investors will be more or less high.

Some interesting examples of these platforms are Lanzanos, First Tuesday or The Crowd Angel.

Phase 5. Go to the Business Angels

Business cash,loan

This type of entrepreneurs are a very important part of the framework of financing and investment within startups. The rounds of funding that this type of entrepreneurs play are greater than those that the startup has had up to now. As a general rule, their contributions are usually between 100,000 and 400,000 €. But the important thing about this investor model is not only its capital but that they offer their new experience, knowledge, experience and contacts to the new business. Something that has much more value than the very capital that any other type of investor can offer.

This community of investors is characterized by its heterogeneity. However, there are certain aspects that all business angels share. And it is precisely these characteristics that differentiate them from other investors.

  • They always invest with their own capital. This is the main difference that can be found with a venture capital company that is responsible for investing with funds belonging to third parties.
  • They make their investment decisions.
  • They invest their capital in those companies that they consider profitable . Business angels are not united by friendship or by family ties to the companies in which they invest. As a general rule they do it on those whose projects are exciting. Do not forget that they themselves are entrepreneurs.
  • One of your interests is to get more money. Although it is not the only one and it does not have to be the most important. Of course, if a business angel trusts your business, be sure you think there is profitability behind it.

If you are thinking of going to business angels in Spain you can find them in Business Angels in Spain and through the Business Angels networks (associated with AEBAN).

Phase 6. Investment funds (Seed Capital)

At the moment in which your company grows enough to be interesting is the time when specialized investment funds in Seed Capital come into play. Through these funds you can get between 100,000 and 500,000 €.

Within these scales of investment in Spain you can find the following:

  • Angels Capital
  • Bankinter
  • Bonsai
  • BStartup
  • Cabiedes
  • Caixa Capital Risc
  • Faraday
  • Inveready
  • Komm
  • Vitamin K

Those funds that exceed one million euros are looking for companies that are in their growth and international expansion phase. Within these funds of greater investment stand out:

  • Active
  • Axon
  • Kibo
  • Nauta Capital
  • Seaya

Phase 7. Investment funds (Growth Capital)

If you get to this financing phase it will mean that your company is earning large amounts and your valuation is excellent. It is here when a startup has to consider the search for international funds. Among the most important names of these funds are the following:

  • Accel Partners
  • Bertelsmann Digital Media Investments
  • Earlybird
  • Index Ventures
  • Point Nine