Bringing a new SaaS company to market requires ingenuity, resources, and planning. Entrepreneurs seeking to launch a UK SaaS start-up or UK SaaS businesses seeking further growth will usually need external funding to make their ideas a reality.   There are five stages to finance a SaaS business:   Pre-seed: Funds to get the project off the ground and create software prototypes. Possibly fund a beta version for testing. Pre-seed funds often come from private resources – the entrepreneur, friends, family.   Seed: This is where the business moves out of first gear and reveals products and potential. Funding may launch the service into the market, obtain partnerships, pay for market research, hire staff. Loans and equity financing become a possibility.   Series A-E funding: The middle ground of the financing process and where the business takes on mass to become an established force. Five rounds with designations from A to E. Each round larger than before. Large-scale lender and VC funding enters the scene.   Mezzanine financing & bridge loans: The last stage before the business opens on the stock market. Funds prepare the company for floatation and are often loans that can be converted into shares when the company goes to IPO.   IPO – Initial Public Offering: The final stage. The business launches on the stock market on boards such as the Nasdaq or the UK’s LSE. The public can now buy shares in the business. Often, this is where founders and early investors sell stock to convert their effort and risk into hard earned cash.