Knowing what to expect from each funding round is helpful and essential if you’re building a startup in the UK.
You might be raising from angel investors or pitching to VCs. Understanding the stages, expectations, and typical cheque sizes can save you time, keep your cap table sane, and help you sound like someone worth backing.
What Are the Main Startup Funding Rounds?
Each funding round signals a certain maturity level, traction, and investor expectations.
* The figures provided for amounts raised and typical valuations for each stage are typical for the UK market. These figures can fluctuate with market conditions. Treat the ranges as starting points only.
1. Bootstrapping / Friends and Family
- Amount Raised: £0 – £50K
- Stage: Idea to prototype
- Investor Type: Self-funded, friends, or family
- Use of Funds: Idea validation, basic MVP, early research
This stage is where you scrape together funds to get moving. You’re pitching your vision and personal credibility more than metrics. Expect informal terms and no due diligence, but keep it clean. Bad paperwork early on can haunt you later.
2. Pre-Seed Round
- Amount Raised: £50K – £250K
- Valuation: £1M–£3M
- Investor Type: Angel investors, early-stage funds, syndicates
- Stage: MVP built, early user feedback
- Use of Funds: Building v1.0, early hires, customer validation
Pre-seed funding is often about proving that your product solves a real problem. You don’t need perfect metrics, but you need something that proves users care, even if it’s just usage, waitlists, or passionate testimonials.
3. Seed Round
- Amount Raised: £250K – £2M
- Valuation: £2M–£7M
- Investor Type: Seed-stage VCs, super angels, angel networks
- Stage: Early traction, real users, some revenue
- Use of Funds: Growing the team, building scalable infrastructure, improving CAC/LTV
This round of funding marks the transition from “it works” to “it grows.” Investors want to see signs of product-market fit. If your retention is shaky or your CAC is unpredictable, focus on fixing those before chasing this money.
4. Series A
- Amount Raised: £2M – £10M+
- Valuation: £7M–£30M+
- Investor Type: Institutional VCs, growth-stage funds
- Stage: Clear product-market fit, consistent growth, strong metrics
- Use of Funds: Scaling teams, entering new markets, accelerating acquisition
By now, it’s all about scalability. You’re no longer proving your idea, but proving that your model can scale. Series A investors want solid monthly growth, strong cohort retention, and a credible path to a much bigger business.
5. Series B and Beyond
- Amount Raised: £10M – £50M+ (and into nine figures for later rounds)
- Valuation: £30M–£100M+
- Investor Type: Larger VC firms, growth equity funds, institutional investors
- Stage: Rapid scaling, internationalisation, M&A preparation
- Use of Funds: Aggressive growth, acquisitions, preparing for IPO or exit
You’re likely post-product-market fit and scaling aggressively. These rounds involve heavy due diligence and come with performance and governance pressure.
The Stages Summarised
| Stage | Amount Raised | Valuation | Main Goal |
|---|---|---|---|
| Bootstrapped | £0–£50K | – | Build a prototype, test assumptions |
| Pre-Seed | £50K–£250K | £1M–£3M | MVP, early proof |
| Seed | £250K–£2M | £2M–£7M | PMF signals, first hires |
| Series A | £2M–£10M+ | £7M–£30M+ | Scale acquisition, enter new markets |
| Series B+ | £10M–£50M+ | £30M–£100M+ | Rapid scale, international expansion |
Don’t Just Raise. Raise Right.
Too many founders chase bigger rounds before they’re ready and pay for it in equity, stress, and dilution.
Here’s what matters more than just “getting funded”:
- Timing: Raise when you’ve hit real milestones, not when cash gets tight.
- Signal: Who you raise from affects how others view you.
- Fit: Choose investors who understand your market and bring more than money.
- Runway: Raise enough to hit the next meaningful milestone, and then some.
What Stage Are You Really At?
Don’t self-diagnose based on what sounds good on LinkedIn.
Are you trying to find your first real users? That’s pre-seed. Got solid retention and repeat revenue? Maybe it’s time for seed. Scaling fast and hiring aggressively? Now we’re talking Series A.
Match your funding round to where you truly are, not where you wish you were.
If you’re gearing up to raise, but unsure whether you’re truly ready, I help founders nail their pitch, sharpen their go-to-market, prove traction, and align for growth. Let’s chat if that sounds like the support you need.