future startup logo

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.

Mohammad Ruhul Kader is a Dhaka-based entrepreneur and writer. He founded Future Startup, a digital publication covering the startup and technology scene in Dhaka with an ambition to transform Bangladesh through entrepreneurship and innovation. He writes about internet business, strategy, technology, and society. He is the author of Rethinking Failure. His writings have been published in almost all major national dailies in Bangladesh including DT, FE, etc. Prior to FS, he worked for a local conglomerate where he helped start a social enterprise. Ruhul is a 2022 winner of Emergent Ventures, a fellowship and grant program from the Mercatus Center at George Mason University. He can be reached at ruhul@futurestartup.com

In-depth business & tech coverage from Dhaka

Stories exclusively available at FS

About FS

Contact Us