Stages of a startups

Startups go through different stages that present unique opportunities, challenges, and types of roles. These stages are often associated with fundraising rounds, which can help track a company's growth. It's important to identify a startup's stage while interviewing for roles, as it can affect team size, product maturity, and compensation.

Different resources define startup stages differently, so there may be variations in the terminology used. However, Crux defines startup stages as follows, which is reflected in their job platform:

Seed

Seed stage startups are considered to be the most dynamic and risky, as they are typically the youngest and least established. They usually consist of small teams ranging from 2-10 people, sometimes just the founders. Seed startups typically raise between $1-5 million in funding, with larger seed rounds becoming more common as more venture capital firms move toward earlier investments.

In seed-stage startups, individuals are required to wear multiple hats as the scope of work is broader than what is expected in larger companies. The roles of each team member are not clearly defined, and salaries may be lower due to limited cash reserves, although equity may compensate for some of the difference.

At the seed stage, startups are still refining their MVP and identifying their target customers, and have not yet achieved product market fit. They iterate quickly, and the product may look vastly different over time as they search for product market fit. As such, it is crucial to hire strong technical specialists, including engineers and scientists, to develop the technology and product.

Series A funding:

To secure Series A funding, a startup must demonstrate that it has a viable product and is making progress towards achieving product market fit, if not already achieved. At this stage, the startup may have a few satisfied customers and initial revenue, but still needs to validate and scale the business. The amount of funding raised during a Series A round varies depending on the industry and estimated scale-up costs. While some startups may require more capital, the typical range for Series A funding is between $5-20 million.

Following a successful Series A fundraising round, startups typically hire critical roles across functional areas, especially in engineering. As the startup acquires additional customers, they begin to expand their go-to-market team, including sales, marketing, and operations. Salaries may be slightly lower than those offered by larger tech companies.

Growth (Series B/C)

Growth stage startups have achieved product market fit and have a clear understanding of their target customers. At this stage, the focus is on scaling the business and expanding the team and physical assets necessary to serve the growing customer base. There is also an emphasis on user growth and scalability.

Growth funding rounds can range from $10-500 million or more, depending on how rapidly the startup and its investors want to grow. Media outlets often report on these funding rounds, providing information on the size of the round and the key investors or VC firms involved.

Companies in the growth stage offer a variety of roles across engineering, product, operations, sales, marketing, and manufacturing and supply chain (if applicable). Salaries are generally approaching those offered by larger tech companies.

Scale (D+)

When a startup reaches the Scale stage, typically in Series D, E, F or later rounds, it has evolved into a big tech enterprise with a large employee base, ranging from hundreds to thousands. At this stage, the startup risk is low as the company has established itself as a major player in its industry.

The total amount of funding raised varies significantly among companies in the Scale stage, but it is common for them to have secured tens or hundreds of millions of dollars. Scale-stage startups are often closest to an initial public offering (IPO), making them an attractive option for those seeking job stability.

Scale-stage companies typically have specialized roles across all departments, with a wide range of positions available for job seekers.

How do I know the stage of a startup?

Determining the stage of a startup can be done by checking news articles that announce the latest funding round of the company, though some companies may not publicly announce their funding. Job descriptions can also provide information on the company's stage, such as the listed investors and team size. Additionally, Crux's Work at a Startup platform allows you to filter companies by their stage and team size, helping you identify relevant job openings.

Finally, when you decide which stages of startup you want to join, you can filter by company stage and size of team on CRUX's Work at a Startup (then apply to relevant roles!).