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A new venture may need several infusions of cash from venture capitalists as the business progresses. The first round, referred to as seed capital, is obtained prior to company launch. It is for market research, concept testing, and alpha and beta testing. The second round, referred to as start-up capital, is for hiring staff, renting office space, purchasing servers and other IT infrastructure, purchasing inventories, equipping the production system, and other activities involved in starting the business. As sales (and production) levels increase, additional funding could be needed to modify the site, re-equip the production system, expand plant capacity, or purchase new facilities. These additional rounds are sometimes called second-stage financing or development capital. Mezzanine financing is the final round of financing before going public. Once a company's stock is publicly listed on a stock exchange, capital is raised by issuing and selling shares.
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