Types of venture capital financing posted by
What are the different types of venture capital financing?
The different types of venture capital financing depends on the investment of
specific purpose within the life of target company as the high return rate of
the company remains constant and it has no effect on it. There are three types
of venture capital financing:-
Early Stage Financing which is divided into three parts of its own they are
1) Seed financing- in this small amount is required for the purpose of starting
up the loan. The amount which is been used in this is received by the
2) Start up financing- in this finished developed products and services are
given to the companies as this can also be used under the initial marketing
where the development of products and services takes place.
3) First stage financing- in this companies which has spent all their starting
capital and which are requiring further finance to begin their business
activities at full scale are used.
Expansion Financing is also subdivided into three parts namely as:-
1) Second stage financing- in this companies begin their expansion this is also
termed as mezzanine financing as it is used for the purpose of providing the
assistance to a particular company to expand the company.
2) Bridge financing
3) Third stage financing
Acquisition or Buyout Financing- in this acquisition and management finance are
used which assist the company to have certain parts or entire company under
themselves. It is also termed as leveraged buyout financing. This also helps in
the management group to obtain a particular product from another company by