Venture Capital

Types of Venture Capital Funding

Types of Venture Capital Funding

Types of Funding:
People or clients approach for venture capital in the following strategies 

Seed capital:
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.

Expansion Capital:

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.

About the author

Muhammad Qasim

Muhammad Qasim, founder of Shaheen ebooks website, which is an online ebooks library serving Urdu books, novels, and dramas to the global Urdu reading community for the last 3 years (since 2018.

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