People or clients approach for venture capital in the following strategies
This is for people who are found starters that do not have any well-organized company . During this period generally a small amount of venture capital is offered to generate a sample product , fund for market research and cover the administrative initial costs .
Start-up Capital :
Only when a sample product made by the company , the venture capital funds are used to cover the employment of different key managements , advance market research as well as iterate the product for getting access to the market .
Early Stage Capital:
A company with two to three years of experience is considered eligible for this type of venture capital. The capital provided at this stage helps the set-up and even small firm improve their production and increase the efficiency.
After a company grows into successful in establishing itself, the venture capital investments are utilized for expanding the business, enter new markets and boost advertising efforts.
Late Stage Capital:
This is the stage of a firm where it requires funds to improvement the efficiency, product marketing strategies and increase the working capital.