Funding, Valuation and Instruments

"Funding" refers to the financial investment that the business receives from various sources such as angel investors, venture capitalists, crowdfunding, or government grants. This capital is crucial for fueling the startup’s growth, covering operational costs, product development, marketing, and scaling efforts. "Valuation," on the other hand, is the estimated worth of the startup, determined based on factors like the business model, market potential, revenue, and the amount of investment it attracts. A higher valuation often reflects investor confidence in the startup's potential for future success and profitability.