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Venture Capital
Venture Capital:
Venture capital firms have very specific objectives and are very selective in the type of companies they invest in. They are an active participant in the management of companies in which they have invested and utilize their management skills developed from their experience with various venture capital investments.
Venture Capital firms provide the following type of financing:
Start up financing - Venture Capital funds invested in startup companies in the product development stage where the product has not yet been introduced into the market. .
Seed finance - seed capital provided to a company to support a new product or idea.
First stage finance – funds advanced to allow a company to begin manufacturing or to develop a service or sales market.
Expansion financing – provides funds for operating capital for startup expansion, growth expansion, and research and product development.
Management & leveraged buyout – funds to acquire a company or a product line.
Workouts & turnaround financing – funds for refinance cash flow, etc. to enable a company to resolve its financial problems and operate at a profit.
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