The stage tells you how much money a company has raised and how far it has come. For you it means four things: stability, salary, equity and scope of work. Every role on the board shows the company’s stage.
What it is: The first money from outside investors. "Seed" because it is money to plant the company. It usually comes from angel investors (private individuals) and small funds in exchange for a share of the company. The company has an idea or a first version of the product and first customers.
You do everything, there are almost no processes. The product is still finding customers. You see the effect of your work fast.
Salary and equity: often below market, equity more common
What it is: The first big round from a venture capital (VC) fund, a fund that invests in young companies. "A" because later rounds are named with letters: A, B, C. The fund comes in when the product works and has paying customers. The money goes into hiring and building sales.
Customers and a working product. Now it builds repeatable sales and first teams. You are often the first person in your function.
Salary and equity: closer to market, usually stock options
What it is: The second big round from funds. The company has shown its way of making money works and now needs money to grow fast: new countries, bigger teams.
Scaling: new countries, processes, first managers. Roles are narrower and better defined.
Salary and equity: market rate, smaller equity percentage
What it is: The third big round, usually from large funds. The money goes into expansion, sometimes acquisitions or getting ready to go public. Further letters (D, E…) are further rounds.
Expansion, sometimes acquisitions. More structure and career paths.
Salary and equity: market rate, often with bonus
Raised
further rounds or self-funded
What it is: The stage of a large, fast-growing company. It is funded by late rounds or already by its own profits.
A large, fast-growing company. Works like a mid-size corporate, only faster.
Salary and equity: market rate, clear bands and bonuses
What it is: A startup valued at $1B or more that is not yet public. The name comes from the time when such companies were as rare as unicorns.
More stable, more process, slower decisions. A strong name on your CV.
Salary and equity: market rate, equity worth less in percentage
Amounts and headcounts are rough ranges for Europe. Single rounds can be much bigger: Warsaw-based Viktor raised a $75M Series A.
- Pre-seed
- The earliest money, often from the founders, family or a single angel investor. Usually before the first version of the product.
- Angel investor
- A private person who invests their own money in young companies, mostly at pre-seed and seed.
- VC fund
- A venture capital fund: it raises money from investors and puts it into young companies in exchange for equity. It usually leads rounds from Series A up.
- Funding round
- When investors buy part of the company for money. Seed, Series A, B, C are consecutive rounds.
- Valuation
- What investors decided the company is worth at the last round. It is not money in the bank.
- Runway
- How many months the money lasts if nothing changes. At seed and Series A it is the most important number.
- Burn rate
- How much the company spends per month above what it earns.
- ESOP
- Employee stock option plan: the right to buy shares later at a fixed, low price.
- VSOP
- Virtual shares. You don’t become a shareholder, but at a sale you get paid as if you were one. Common in Germany.
- Vesting
- You earn your equity in parts, usually over 4 years. Leave early and you keep only part of it.
- Cliff
- The first stretch of vesting, usually one year. Leave before it ends and you get nothing.
- Dilution
- Every new round shrinks your percentage, because new shareholders come in. Usually by 15–25% per round.
- Exit
- The company is sold or goes public. Only then does equity turn into money.
- ARR
- Annual recurring revenue, e.g. from subscriptions. The most quoted number at SaaS startups.
- Unicorn
- A startup valued at $1B or more that is not yet public.