There is almost no big company or enterprise that didn't start from scratch. From Tesla to Apple to Pixar, most of them started off with a great idea, lots of effort, and a small garage. With every passing day, entrepreneurs come up with amazing startup ideas and newer methods to implement them. This, however, is easier said than done, since startups need both funding and support along with immense hard-work in their initial days to be successful.
This is where equity and venture firms come in. If they find the idea behind a startup reasonably adequate, they make the initial and much needed investment in the startup. Blackstone and Apollo Global Management are some equity investment firms, while Google Ventures in a venture investment firm. But before knowing what startups are funded by Google, lets find out how funding works.
How startup funding works?
Apparently, there are certain different kinds of funding based on factors such as valuation of the company, its customer base, strategy, revenue gain and other technical factors. These funding are categorized as follows:
- Pre-seed Funding- This is the most early stage of a startup, and the funding here is mostly the initial investment in the idea, and is done by the founders themselves. This stage isn't even officially included in the funding rounds, however, it is where a startup begins.
- Seed Funding- This is where the first official investment for a business or a venture is made. Seed funding helps startups take the initial steps towards making their products. While the failed startups never go beyond this stage, the one's that do, proceed to the Series A round.
- Series A Funding- Once a startup or company has surpassed Seed round, has an established user base, and offers its services or products, they can opt for Series A Funding. This is where they can use the investment money to further optimize their product, and raise anywhere from $2 million to $15 million.
- Series B Funding- After Series A, this round helps a business to advance to the next level. If the company has justified the initial investment with a strong customer base and valuation, Series B funding helps to take the business to the next level. The investment in this round can range from $30 million to $60 million.
- Series C Funding- The businesses which are already successful and are looking to build new products to touch newer markets are funded in this round. The companies in this round may also acquire other companies, and the investors and founders in this round look for exponential growth. The valuation of companies in this round can range in hundreds of millions.
Although there can be more funding rounds corresponding to the alphabet, these are particularly the one's where most startups reach. There is also a private equity funding away from public markets in which private companies can finance startups privately.
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Google Ventures is a venture capital investment firm of Alphabet, the parent company of Google. Renamed to GV, the primary objective of Google Ventures since its conception has been to back founders with a vision for the future of entrepreneurship. GV has funded over 500 portfolio companies, and is in constant search for new and industry changing ideas and startups.
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Top Startups Funded by Google
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