The process of startup funding and fundraising tends to be made overly complex and comes off as confused and hard to navigate. I wanted to share the process in the easiest to follow way. Below is an image that guides your through each process and the order they happen. It is best to research these key points to understand what is going on and why they are all important steps to your successful startup!
This does seem to cover the key milestones of the process which is helpful to look at. The process of this can be quite different in time, cost, and general work effort though depending on your niche and what investors you are working with.
The point between investors and term sheets is one you will be spending the most time in, often over and over again with the same group of investors. Not many people explain this.
It seems so basic when you map it out like that but the finer details add up real fast. It can sometimes take months to get the fundraising moving when businesses are involved.
It is always easier on paper. You need to be aware that each step takes time and knowledge. The best way to gain knowledge is hands on experience as well so get your hands dirty in the business of fundraising!
This outlines everything I would have expected and then some. While it is missing the finer details it gives anyone a rough estimate of what is to come when it comes to starting up a fundraising campaign for a business idea.