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What Are The Types Of Venture Capital Funding?

Answer»

The various types of venture capital are classified as per their applications at various stages of a business. The three principal types of venture capital are early stage financing, expansion financing and acquisition/buyout financing.

The venture capital FUNDING PROCEDURE gets complete in six stages of financing corresponding to the periods of a company’s development

SEED money: Low level financing for proving and fructifying a new idea

Start-up: New firms needing funds for expenses related with marketingand product development

First-Round: Manufacturing and early sales funding

Second-Round: Operational capital given for early stage companies which are selling products, but not returning a PROFIT

Third-Round: Also known as Mezzanine financing, this is the money for expanding a newly beneficial company

Fourth-Round: Also calledbridge financing, 4th round is proposed for financing the "going public" process

The various types of venture capital are classified as per their applications at various stages of a business. The three principal types of venture capital are early stage financing, expansion financing and acquisition/buyout financing.

The venture capital funding procedure gets complete in six stages of financing corresponding to the periods of a company’s development

Seed money: Low level financing for proving and fructifying a new idea

Start-up: New firms needing funds for expenses related with marketingand product development

First-Round: Manufacturing and early sales funding

Second-Round: Operational capital given for early stage companies which are selling products, but not returning a profit

Third-Round: Also known as Mezzanine financing, this is the money for expanding a newly beneficial company

Fourth-Round: Also calledbridge financing, 4th round is proposed for financing the "going public" process



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