What are the phases of a startup? When we talk about the phases of a startup, we are talking about the seasons that they tend to have during their life cycle. In each of them our projects will have different objectives, characteristics and financing needs. So, these are the main phases that a startup goes through:

Phases of a StartUp:

• Pre-Seed phase or Previous Seed phase.
• Seed phase or Seed phase.
• Early Stage phase or Initial phase (Series A).
• Growth Stage phase or Growth phase (B series).
• Expansion stage (series C).
• Exit phase or Exit phase.

What is a StartUp?

Before continuing with the phases, we will briefly define the characteristics that a project or idea must have to be considered a startup. In particular, two keys are distinguished. On the one hand, great potential for growth or scalability, which is why many investment funds and accelerators work hard in this sector. On the other hand, they tend to have a technological and digital component, in order to establish economies of scale and reach large market volumes.

Now that we know what a startup is and its main characteristics, we continue with the stages these successful startups go through.

Pre-Seed phase or Previous Seed phase

The pre-seed phase is the starting point for all startups, it is also considered the idea stage. It is the moment when people of different profiles start to meet, take the first step and form the first groups.

An innovative idea, an identified market need, a business opportunity, great enthusiasm and presentation are usually the only components of projects at this stage. No revenue, no sales, no minimum viable product yet.

Based on the ecosystem that surrounds these entrepreneurs and their knowledge of the sector in which they operate, the pre-growth phase will last more or less time. Sometimes these startups manage to get the attention of incubators or accelerators and thanks to their programs they manage to establish their business model.

When it comes to funding, early-stage startups are often one of the big unknowns. How to get money to launch your startup is a problem that helps every entrepreneur not only at this stage, but throughout the growth. In this case, the first source of funding is usually that of the entrepreneur (assessing the cost-opportunity-risk at all times). Often it is not enough, so the next step is the famous 3Fs: Friends, Family and Fools; Friends, Family and "Crazies" who bet on the entrepreneur's idea.