What is fundraising and what are the core stages?

Full Explanation

Typical fundraising progression: 1) Friends and family (£50K-£500K), 2) Angel round (£100K-£2M), 3) Seed VC (£500K-£3M), 4) Series A (£3M-£15M), 5) Series B (£10M-£50M), 6) Series C/D+ (£25M+). Each round targets different investor types: friends/family are individuals; angels are high-net-worth individuals; seed VCs are specialist early-stage funds; Series A is typically tier-1 VCs; Series B+ includes larger VCs, growth equity, PE. The core difference: earlier rounds are based on market size and team quality (pre-revenue or early traction); later rounds are based on revenue, growth rate, and path to profitability. Use of proceeds also shifts: seed funds product development and initial team; Series A funds sales and marketing; Series B funds scaling (hiring, geographic expansion); Series C+ funds M&A, international expansion, or path to IPO. For founders, understanding the fundraising landscape is critical: you wouldn't approach a £500M AUM seed fund for £100K; you'd approach angels. Equally, you wouldn't ask a Series A investor to lead a seed round (they need larger cheques and more traction). Opagio's questionnaire helps founders assess their readiness for each fundraising stage.

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