FAQ

Investment rounds are classified into:

1. Early - this includes pre-seed (pre-seed stage), seed (seed), angel funding, Round A.
2. Late - all other stages are considered late, they have letter designations (Round B, Round C, Round D and others).

The process of financing a startup begins with analytics: the product, demand for it, market size, financial performance indicators or their forecasts, skills and experience of the team, level of management, risks and other factors are evaluated. The choice of a suitable round of investments, the type of investor (business angel, accelerator, venture fund, and so on), the determination of the amount required by the company depends on the result. Financing at each new stage involves attracting more and more funds.

The initial stage of funding, which falls on the idea stage, hypothesis testing, development and launch of the MVP (minimum viable product). It is considered separately from the generally accepted classification of investment rounds. At this stage, the source of funding is often the founders' own savings, as well as funds from relatives, friends, like-minded people (the so-called FFF triad - Friends, Fools, Family).

The generally accepted classification of investment rounds begins with seed. The stage is considered the most difficult, since it includes testing the business model, analyzing the degree of compliance of forecasts with real results.

When making a decision on financing, the demand for the product, the market size, the effectiveness of the business strategy, the level of professionalism of the team, its attitude and ambition are evaluated. The financial model is analyzed, which is built on the basis of available data, startup development forecasts, the potential of the market segment and indicators of similar companies in the same niche.

Acceleration is a program of intensive startup development through mentoring, training, financial and expert support.

Incubation is an organization created to support startups at an early stage of their activities. It provides them with premises for rent on preferential terms, and also provides consulting, financial and legal assistance.