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Venture Capital
Early-Stage
Financing
- Seed Capital
- Capital provided by an investor to prove a concept and qualify
for "start-up" capital.
- Start-up
Capital - Money needed to develop an
idea into a finished product.
- First Stage
Financing - Funding provided to
companies that have expended their initial capital, and require
funds to start full-scale manufacturing and sales.
Expansion Financing
- Second-Stage
Financing - Working capital for the
initial expansion of a company that is producing, shipping, and
has growing accounts receivable and inventories.
- Third-Stage
or Mezzanine Financing - Financing
provided for the major expansion of a company whose sales volume
is increasing and that is breaking even or profitable. These
funds are used for further plant expansion, marketing, working
capital, or development of an improved product.
- Bridge Financing
- Interim financing used to
solidify a position until more permanent financing is
arranged.
- Short-term financing
that will be repaid when the IPO occurs.
Acquisition /
Buyout Financing
- Acquisition
Financing - Funding to acquire or
merge with another business.
- Leveraged
Buyout Financing - Provided for the
strategic purchase of other product lines, divisions, or
companies.
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