Types of Venture Capital Investment?
Venture capital investments are allocated to selected companies at various stages of their life-cycle:
- Seed Investing : before there is a tangible product or company established. A seed company is commonly characterized by a handful of people within the organization having prototype of product with little or no revenue.
- Early stage investing : once a company has completed its product development stage and requires funding to initiate commercialization efforts and to close sales. The Company may have some sales but not enough to generate profit for the Company.
- Later stage investing : assists a Company to achieve further growth either by way of scaling up production capacity, capturing significant market share or enabling further product development to attract public financing (i.e. initial public offering, merger or acquisition)