‘Angel’ investments are the first checks written by the most successful entrepreneurs or people who have earned the capital in other fields. Normally this sum is about $50,000-100,000. It is sufficient to let the entrepreneur check the product value and start creating MVP.
Pre-Seed investments are intended for the companies that might lack MVP but have the reaffirmation of a potential client interest. The main investors are business angels and the founders themselves. Check is up to $250,000. The most famous American angels are Brad Feld, Rob Conway, and Marc Andreessen.
Seed rounds attract teams with developed MVP and the first paying clients. This round is estimated in $0,5-3 million. Investors have enough money for about a year. The major objective is to establish scalable sales of the main product. At this stage the key players are business angels, seed funds, and accelerators. The well-known ones are Y Combinator, 500 Startups, and Techstars. In particular, First Round Capital is the star of the venture market.
The Post-Seed stage is aimed at the startups that have raised the seed round but lack time to check main hypotheses and get revenue. This is a normal case for venture business. That is why the team needs 2-3 quarters more to develop. In order to achieve it, they attract additional funding. For instance, $2 million on the Post-Seed stage after $3 million on the Seed round.
Series A/B/C. The farther an alphabet letter is, the bigger the round of funding is. The sum of A round is normally $2-15 million. The main objective of teams is to optimize a user base and scaling in other market segments. At this stage professional venture funds appear. The round B can amount to $tens of millions. C round is about $hundreds of millions. There is a loads of funds investing at the latest stages. Andressen Horowitz are especially prominent.
Investments of every stage are predicated on the logic and development level of the managing fund team. If a person wants to invest in 10 companies per year with small checks, they become angels. If they manage to raise a fund for $10-20 million, an early-stage fund appears. The wealthier a fund is, the later the stage is.