Finding the right first round investor

With the explosion of different staged venture capital sources it is becoming difficult to know where to turn for your first round of financing. How is an ordinary entrepreneur supposed to understand which funding group is the right one for her business? Rather than explaining the difference between micro-VCs, angel groups, big-time venture capitalists, growth funds in text, I thought I would draw a helpful diagram (I haven’t done one of these in a long, long time!)

The X axis is the stage of the company seeking funding – from just an idea on the left to a profitable company with a big revenue base on the right.

The Y axis is the amount of capital required – from a tiny amount at the bottom to many millions at the top.

Finding right 1st round investor

Finding right 1st round investor

2 Responses

  1. Twitted by VC4Africa Says:
    August 9th, 2010 at 3:51 pm

    [...] This post was Twitted by VC4Africa [...]

  2. Kwiat Says:
    November 30th, -0001 at 12:00 am

    You could probably add Super Angels to complete the picture :)

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