Question

• Discuss the five main stages in the process of venture capital financing.

Answer 1

The five main stages in the process of venture capital financing are followings -

1. The Seed Stage: The seed stage of financing is the initial financing of a business when it is just an idea. The money generally used in research and development, market research, viability of business analysis etc.
2. The Startup Stage: The startup stage is next level of financing when the business actually stats its business or starts executing its business ideas
3. The First Stage: The first stage of venture capital financing in the next level of financing after start-up and fund generally given for manufacturing, production facilities, sales etc.
4. The Expansion Stage: The expansion stage comes after the first stage of financing and the funding is generally given for further expanding the business to the next level after initial success.
5. The Bridge Stage: The bridge stage of financing is generally final stage of venture capital financing. After that the companies reached to mature stage and seeks different sources of financing like IPO, debt financing etc.