The Funding Stages Explained
Raising capital is one of the most critical—and often most challenging—aspects of building a startup. Whether you're preparing for your first angel round or gearing up for Series A, understanding the funding landscape is essential for success.
Pre-Seed: Building the Foundation
Pre-seed funding is typically the first external capital a startup receives. At this stage, you're validating your idea and building an initial product. Typical amounts: $50K - $500K from friends & family, angel investors, and pre-seed funds.
Seed: Proving Product-Market Fit
Seed funding helps you take your MVP to market and demonstrate initial traction. Typical amounts: $500K - $3M from seed funds, angel syndicates, and micro VCs.
Series A: Scaling What Works
Series A is about scaling a proven model. You've demonstrated product-market fit—now it's time to pour fuel on the fire. Typical amounts: $5M - $20M from venture capital firms.
Written by
Alexandra Chen
Managing Partner
Helping founders build and scale their ventures at Lume Network. Passionate about startups, growth, and building great products.