Explaining Billion-Dollar Startups to Skeptics

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insightsquared.com“How are startups raising millions in A, B, C and D rounds of funding?”

Well, let’s say two founders have a great idea for a company, a Minimum Viable Product, and are ready to raise some money. When the founders approach Venture Capital firms in the hopes of raising money, it’s a little bit like dating. The founders are looking to raise the most money without diluting ownership, while VCs are looking for companies with most potential to grow in the future. The earliest investors take on the most risk, while the later investors generally take on less.

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