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(Redirected from Venture capital funding)
Type of High-Risk/High-Reward Funding of a High Growth Potential Company

Venture capital financing is a type of funding by venture capital. It is private equity capital that can be provided at various stages. Or funding rounds. Common funding rounds include early-stage seed funding in high-potential, growth companies (startup companies) and growth funding (also referred to as series A). Funding is provided in the interest of generating return on investment or ROI through an eventual exit through a share sale to an investment body, another trading company or to the general public via an Initial public offering (IPO).

Venture Capital can be made in four methods:

  1. Equity Financing;
  2. Conditional Loan;
  3. Income Note; and
  4. Participating Debenture.

See also

References

Further reading

  • Ruhnka, "Tyzoon T." Tyebjee, "Albert V." Bruno (1984). "A Model of Venture Capitalist Investment Activity". Management science. Volume: 30, Issue: 9 (September 1984), pp. 1051–1066.
  • Frederick D. Lipman (1998). "Financing Your Business with Venture Capital: Strategies to Grow Your Enterprise with Outside Investors". Prima Lifestyles. (November 15, 1998).

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