A startup depends highly on outside funding, as being an innovative company it is rich in ideating but poor in finance. Basics of a startup funding in the initial stage happens when you search a co-founder to invest in your idea. You also get initial stage funding from your family and friends. As it is not enough, within the next three months an angel investor provides the seed money. The next round of funding is provided by a venture capitalist in the next six months. Going for an Initial Public Offering (IPO) can help the investors’ exit, as a startup can raise enough funds, paving the way for angels and VCs exit, which is also an exit modality.