How to Use StartupSignalBoard
Everything you need to know about tracking startup funding, understanding VC terminology, and getting the most out of our platform.
Quick Start Guide
Frequently Asked Questions
Q:What is a funding round?
A: A funding round is a structured process where a startup raises capital from investors in exchange for equity (ownership shares) or convertible instruments like SAFE notes. Rounds are typically named by stage — Seed, Series A, B, C, etc. — reflecting the company's maturity and the size of capital needed. Each round usually comes with a valuation, a term sheet, and due diligence before closing.
Q:What is the difference between Seed and Series A?
A: A Seed round is typically the first formal institutional funding a startup raises, usually ranging from $500K to $5M. The company is often pre-revenue or in early traction, and investors are betting on the team and idea. A Series A is the next stage — usually $5M to $25M — where the startup has demonstrated product-market fit and is ready to scale. Series A investors expect clearer metrics: MAUs, ARR, retention, and a path to profitability.
Q:What do VCs look for in startups?
A: Venture capitalists evaluate several factors: (1) Team — the founder's domain expertise, execution track record, and resilience. (2) Market — is the addressable market large enough (ideally $1B+) to produce a venture-scale return? (3) Product — does the solution have strong differentiation and defensibility? (4) Traction — revenue growth, user growth, or engagement metrics. (5) Business model — clear path to monetization. (6) Timing — why is now the right moment for this product?
Q:What is pre-money vs post-money valuation?
A: Pre-money valuation is what investors agree the company is worth before the new investment is added. Post-money valuation is the company's value after the investment closes (pre-money + investment amount). For example, if a startup has a $10M pre-money valuation and raises $2M, its post-money valuation is $12M — and investors own 2/12 = 16.7% of the company. SAFE notes often specify a valuation cap, which is effectively the maximum pre-money valuation at which the SAFE converts to equity.
Q:What is a unicorn startup?
A: A unicorn is a privately held startup with a valuation of $1 billion or more. The term was coined by venture capitalist Aileen Lee in 2013, when such companies were considered rare. As of 2024, there are over 1,200 unicorns globally. Companies valued at $10B+ are called decacorns, and $100B+ are called hectocorns. Valuation is typically established in the most recent funding round or secondary market transactions.
Q:How can I invest in startups?
A: Individual investors can access startup equity through several routes: (1) Equity crowdfunding platforms like Republic, Wefunder, or StartEngine (open to non-accredited investors under Regulation CF). (2) Angel investing syndicates like AngelList, where accredited investors co-invest alongside experienced angels. (3) Venture capital funds that accept LP (limited partner) commitments, though minimums are often $100K–$1M. (4) Secondary markets like Forge or EquityZen for shares in late-stage pre-IPO companies. Note: startup investing is high-risk and illiquid.
Q:What is a SAFE note?
A: A SAFE (Simple Agreement for Future Equity) is a financing instrument created by Y Combinator. Instead of giving investors shares immediately, a SAFE gives them the right to receive equity at a future priced round, typically at a discount or subject to a valuation cap. SAFEs are simpler and faster to close than convertible notes (they have no interest rate or maturity date). They are most common in pre-seed and seed rounds. Post-money SAFEs (introduced in 2018) specify dilution on a post-money basis, giving founders clearer cap table math.
Q:What sectors are getting funded?
A: As of 2024-2025, the highest-funded sectors include: (1) Artificial Intelligence & Machine Learning — generative AI, AI infrastructure, enterprise AI tooling. (2) Climate Tech & Clean Energy — battery technology, carbon capture, grid modernization. (3) Healthcare & Biotech — GLP-1 drug development, digital health, diagnostics. (4) Fintech — embedded finance, B2B payments, insurance tech. (5) Defense & Dual-Use Tech — autonomous systems, satellite communications, cybersecurity. You can browse StartupSignalBoard's sector pages for detailed breakdowns with funding totals and deal counts.
Q:How do I find jobs at well-funded startups?
A: StartupSignalBoard makes this easy: browse our startup pages to find recently funded companies, then click through to their profiles. Well-funded startups are actively hiring after raising capital. Other strategies: (1) Follow announcement posts on LinkedIn after funding news breaks. (2) Check company career pages directly 30-60 days after a funding announcement. (3) Use job boards that filter by funding stage, like Wellfound (formerly AngelList Talent), Pallet, or YC's Work at a Startup. (4) Join VC firm newsletters — firms often blast their portfolio's open roles to subscribers.
Q:What is a startup acqui-hire?
A: An acqui-hire (acquisition + hire) is when a larger company acquires a startup primarily to bring on its team, not its product or technology. The acquirer typically shuts down or pivots the startup's product and integrates the founders and engineers into internal teams. Acqui-hires are common when startups fail to reach product-market fit but have strong engineering or AI talent. Investors generally receive a small return; founders may receive retention bonuses tied to employment contracts. The term became widely used during the 2010s talent wars among Big Tech companies.
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