In the fundraising journey, you will typically progress through various startup stages. Each stage—ranging from Pre-Seed to IPO or Exit—represents a new phase in terms of source of capital, ticket size, intended use, etc. Investors assess startups based on different criteria at each stage, such as traction, scalability, and product maturity. Understanding these stages helps you understand, what every stage typically demands from you and in which stage you are currently in. It further helps you identify which investor is best suited at that stage, and how much they typically invest during these phases.
PS: This is mostly for orientation purposes. Numbers can vary due to different needs in specific industries (SaaS, Biotech, MedTech, etc.).
We outline key startup stages, from ideation to exit, and what founders should expect at each step of the journey.
Source: Venionaire DealMatrix (2025)
The Early Stage: Pre-Seed and Seed
Pre-Seed Stage
At the pre-seed stage, founders are focused on developing their initial idea, validating the problem, and laying the groundwork for the business. This stage often lacks a product, and funding is typically sourced from the founders themselves, family and friends, or small angel investments and public subsidies.
Primary Goal: Problem validation and foundational setup
Typical Capital Sources: Founders, personal networks, public grants, early angels
Funding Range: €10,000 – €250,000
Intended Use: Prototype development, market research, early startup costs
Traction: A validated problem-solution hypothesis
Product Development: Concept phase; often no MVP yet
Seed Stage
The seed stage revolves around building and refining a Minimum Viable Product (MVP), conducting market testing, and securing initial users or customers. This is where the first institutional or organized funding typically occurs, often through angel investors, seed venture capital funds, or accelerator programs. To accurately determine your valuation and connect with stage-specific investors, consider using our valuation software.
Primary Goal: Product development and market entry
Typical Capital Sources: Angel investors, seed funds, accelerators
Funding Range: €2 million – €5 million
Intended Use: MVP expansion, branding, user acquisition, market research
Traction: Early customer interest, usage data, or pilot projects
Product Development: MVP built and in user testing
The Growth Stage: Series A, B, C, and Beyond
Series A
At this point, the company has achieved product-market fit and is looking to scale operations. Funding is typically raised from venture capital firms and institutional investors to support team expansion, structured sales and marketing, and continued product refinement.
Primary Goal: Scaling and operational expansion
Typical Capital Sources: Venture capital funds, institutional investors
Funding Range: €5 million – €20 million
Intended Use: Team building, sales infrastructure, product improvement
Traction: Stable product-market fit with growing user base
Product Development: First full version of the product with active improvements
Series B, C, and D+
These later-stage funding rounds focus on scaling the company further—whether through international expansion, product diversification, or infrastructure development. Investors at this stage expect solid metrics, operational efficiency, and clear paths to profitability.
Primary Goal: Fast scaling and market leadership
Typical Capital Sources: Later-stage venture capital, private equity
Funding Range:
Series B: €25 million – €100 million
Series C: €80 million – €200 million
Series D and beyond: €100 million+
Intended Use: Market expansion, hiring, infrastructure, acquisitions
Traction: Strong growth, repeatable processes, scalability
Product Development: Market-ready, highly scalable version with optimized features
The Later Stage: IPO or Strategic Exit
IPO / Exit
The final stage of a startup’s journey often involves a liquidity event—such as an IPO or acquisition. At this point, the business is fully mature, with a sustainable revenue model and a well-developed product portfolio. Funding at this stage is used for continued growth, acquisitions, or to deliver returns to early investors.
Primary Goal: Liquidity for shareholders, strategic growth or expansion
Typical Capital Sources: Public markets, corporate buyers, strategic investors
Funding Range: Dependent on valuation and market conditions
Intended Use: Debt repayment, acquisitions, shareholder returns
Traction: Sustainable profitability or a clear path to it
Product Development: Fully developed product portfolio
Final Thoughts
Understanding your startup’s stage is essential to raising the right type of capital, from the right investors, at the right time. Each stage not only brings a new funding threshold but also higher expectations around traction, product maturity, and scalability.
For founders preparing to fundraise, aligning your goals and metrics with the appropriate stage increases your credibility and improves your chances of securing investment.
For support with pitch deck preparation, legal structuring, and deal negotiations, Venionaire Capital offers expert services tailored to every growth phase.