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 Start-Up Journey

Every journey is different, however, we have tried to pinpoint key moments during a start-up lifecycle to help guide you through the process

Types of Start-ups

The term “start-up” is usually used in reference to Product-oriented companies rather than service companies. However, some companies try to sell services to provide cash, while building products in the background.


A product orientated startup sells a tangible product that is not directly linked to labour.

  • Advantage: Scalable and can multiply output significantly compared to labour and other input costs.

  • Disadvantage: Needs capital to research, design and produce a viable product (also known as an MVP).


A service-oriented startup is where sales are driven by labour (or derivations of labour) sold.

  • Advantage: Instant cash flow on sales of the service.

  • Disadvantage: Harder to scale. Staff retention, training.

 Stages of a Start-up

Funding Stages of a Product start-up

You need investment funding until you reach profitability:

  • Building out technology products until they can be sold is expensive

  • For e.g. Capital goods, the payback period is usually longer and even more expensive to fund

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Funding Stages Of A Tech Start Up

  • Varies with the need of the product and market. But typically the biggest need is when product development is near the end and before the money starts coming in - if it does!

  • And don’t forget go-to-market funding e.g. advertising!

  • Many startups initially just “hack”, or have no-code trial versions; you don’t need the full technical development team; however full commercialisation requires full security and reliability in order to maximise success to market. Which costs. Revenue is likely to be minimal at this point.

What about Series B, C, D?

  • Typically this is funding either for: significant retail-facing growth; or extensive product development

  • Funding at Series B, C and D is often used to take on significant players. See Fintechs v. incumbent banks.

  • Sometimes code for a new idea (so a new “curve”)

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 Sources of Funds

Funding stages

The source of funding varies depending upon which stage the start-up is currently positioned, and the circumstances of the founding team.

Ship Shape helps you find the right VC investor in seconds, not months
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