Understanding the life-cycle of start-ups is key in helping them find the right funding opportunities. Next that, a good understanding of the types of start-ups and their respective needs is needed. The figure above, shows the different funding parties relevant for:
a) fast growing start-up
b) start-up with high R&D expenditure
c) average start-up
As shown in the figure, depending on their type and growth rate, start-ups need to look for financing at from different players – own funds, pre-seed and seed funds, informal investors, venture funds, private venture capital, stock market, or private equity.