Seed Stage

Seed Stage

The seed stage in bootstrapped startups is the initial phase. Founders use personal resources for activities like market research, product development, and early testing. External funding is not sought at this stage. The goal is to validate the business concept before scaling.

When does a startup typically enter the seed stage?

A startup typically enters the seed stage after the ideation and initial development phases. The specific timing can vary, but it usually occurs when the founders have:

1. Concept Validation: They have a clear business concept and have conducted some level of validation to ensure there is demand for their product or service in the market.
2. MVP or Prototype: They have developed a Minimum Viable Product (MVP) or a prototype that demonstrates the core functionality of their product.
3. Initial Traction: They have acquired some early customers or users and have received feedback that indicates potential market interest.
4. Business Model: They have a basic business model outlining their strategy for growth and a path to profitability.
5. Team in Place: They may have a small team or co-founders who are committed to the startup's success.

It's important to note that the exact point at which a startup enters the seed stage can vary based on the nature of the business, the industry, and the founders' goals. Some startups may enter the seed stage relatively early, while others may bootstrap for a longer period before seeking external funding. The seed stage is typically followed by Series A, Series B, and subsequent funding rounds as the company grows and evolves.