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How Startup Funding Works [Infographic]

We don't have regular funding events yet in Dhaka but it is going to be prevalent soon. Last week we have seen two Bangladeshi startups to get seed funding from Fenox Venture. Previously Chaldal, Priyo, bKash, SureCash raised venture funds. However, there is very little to no idea among people about how startup funding works. As a result what happens is pretty confusing: investors ask for undue equity share, founders also don't understand what is the aftermath of a funding round.

Following infographic developed by Funders and Founders takes a hypothetical startup into consideration that gets about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. This infographic is how it works.

how-funding-works-infographic
Ruhul Kader is a Dhaka-based writer, researcher, and entrepreneur. He is also the co-founder and CEO of Future Startup and the author of Rethinking Failure: A short guide to living an entrepreneurial life. He writes about entrepreneurship, business, strategy, technology, and culture. He can be reached at [email protected]

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