Early stage

The early stage is the second of three venture capital funding stages: seed stage, early stage and late stage. Each funding stage is somewhat loosely defined: there isn't a strict standard for the size of funding rounds, the specific milestones a start-up must achieve, or even the exact timing of each stage.

The early stage is characterized by product development and market validation. It involves building the product or service and finding the right market fit. At this point in its life, a start-up has moved beyond the initial concept or idea. It has usually developed a minimum viable product (MVP) and may have some initial customers or revenue. However, the company is still in the process of validating its business model, scaling its operations and establishing a strong market presence.

Early stage funding often includes Series A and sometimes Series B rounds. The Series A round is typically the first significant round of venture capital funding, where the start-up raises capital to further develop its product, hire key team members and expand its customer base. If the start-up continues to grow and needs more capital, it may pursue a Series B round, which focuses on scaling the business and optimizing operations.

The size of early stage funding rounds will vary significantly depending on factors such as the start-up's industry, growth potential, and the specific needs of the company. Typically, early-stage deal sizes will be around 15 million dollars. 

While this stage is less risky than the first seed stage, it still carries substantial risk.