Startup development stages describe the journey of an innovative company from inception to maturity or IPO. Key phases include: pre-seed (idea and prototype), seed (concept validation), Series A (scalability), Series B (growth acceleration), Series C+ (expansion), and exit (strategic acquisition or IPO). Each phase corresponds to distinct risk levels, valuation methodologies and investor profiles. As documented in our dedicated guide, understanding these phases is essential for structuring appropriate fundraising rounds and setting realistic valuation expectations.

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Example: a Swiss AI healthcare startup progresses from seed (TRL 4, CHF 3.0 million valuation), to Series A (TRL 7, first clients, CHF 12.0 million), to Series B (multi-market commercialisation, CHF 45.0 million). Each phase transition mechanically reduces the discount rate in valuation models — reflecting the progressive derisking of technology and commercial uncertainty as the TRL advances and revenue traction is established.

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Hectelion values startups at each development stage with the methods appropriate to their phase — from VC method to DCF — integrating TRL and MRL maturity levels as risk parameters in the discount rate.