Understanding startup funding stages is essential for founders preparing to raise capital. Each stage has different expectations, investor types, and amounts involved.
Pre-Seed Funding
The earliest investment stage, typically before a startup has a minimum viable product (MVP). Funding comes from personal savings, friends and family, angel investors, and accelerators.
- Typical Amount: Up to £150K
- Purpose: Prototype development, market validation, initial team building
- Investors: Friends & family, angels, accelerators, pre-seed VCs
- Documentation Needed: Business plan, pitch deck, market research
Seed Funding
The first significant external funding round. Startups at this stage typically have an MVP and early traction — initial customers, revenue, or strong user growth.
- Typical Amount: £250K–£2M
- Purpose: Product-market fit, hiring key team members, early marketing
- Investors: Angel investors, seed-stage VCs, accelerators
- Documentation Needed: Cap table, financial model, pitch deck, legal agreements, data room
Series A Funding
The first major institutional investment round. Startups must demonstrate proven demand, sustainable revenue, and clear growth potential.
- Typical Amount: £2M–£10M
- Purpose: Scaling operations, entering new markets, optimising processes
- Investors: Venture capital firms conducting rigorous due diligence
- Documentation Needed: Detailed financials, clean cap table, IP documentation, compliance certifications, data room
Key Legal Documentation at Each Stage
| Stage | Key Documents |
|---|---|
| Pre-Seed | Founders' Agreement, IP Assignment, NDA |
| Seed | SAFE/Convertible Note, Term Sheet, Cap Table |
| Series A | Investment Agreement, Shareholder Agreement, Board Minutes, Due Diligence Pack |
How eSignHub Supports Fundraising
eSignHub provides SAFE templates, NDA creation, encrypted deal rooms for investor data sharing, cap table management, funding round modelling, and round closing checklists — all from one platform.
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