VCs and other investors make it possible for promising entrepreneurs, with little or no operating history, to secure capital to launch their business.
Stage 1: Seed capital
Seed money means capital that will enable startups to grow in the future.
Stage 2: Series A stage
The company has a product available at this stage. VCs might be focusing on acquiring key personnel, fine-tuning the product/service.
Stage 3 :Series B stage
Funding received at this stage will go toward manufacturing and production facilities, sales and marketing.
Stage 4: Expansion stage
Growth is often exponential by this point. VC funding becomes more fuel for the fire, enabling expansion to additional markets.
Stage 5: Mezzanine stageÂ
At this juncture, the company may be looking to go public, given that its products and services have found suitable traction.
A successful startup requires more than just a great idea. It needs a regular stream of funding provided by investors. VC Â is an indispensable part of the fundraising ecosystem.