Stages involved in the process of venture capital financing
- Seed stage: Seed Funding takes place in this step
- Start-up stage: Involves presentation of business plan by the attendant of the venture to the VC firm
- Second stage: Here, the idea transforms into product and begins to sell
- Third stage: Here, the expansion of market share takes place
- Pre-public stage: As the venture achieves market share, some good prospects begin to come.
Difference Between Seed Funding and Venture Capital
FAQs on Venture and Seed Funding
Q1: Who is known as Venture Capitalist?
Ans: Venture Capitalists are basically the investment professionals and general partners of the venture capital firm.
Q2: What is the difference between Angel Investing and Venture Capital?
Ans: Angel Investing is a kind of informal network of investors who have their own interests associated with the company in which they invest. On the other side, Venture capital firms are more of professional investors dedicated to investing and building innovative companies on the part of third party investors.
Q3: How a Venture Capitalist is advantageous for the start-ups ?
Ans: A venture capitalist can prove to be very advantageous for the start-ups as he/she brings with him/her a noticeable experience and contacts for the start-ups. The capitalist not only provides funds without the regular repayment liability to a start-up with his/her expertise but also provides some other less tangible advantages such as coaching and handholding.