Venture capital. In addition to angel investing and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering.
In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership (and consequently value). Venture capital is also associated with job creation (accounting for 2% of US GDP),[2] the knowledge economy, and used as a proxy measure of innovation within an economic sector or geography. Every year, there are nearly 2 million businesses created in the USA, and 600–800 get venture capital funding. History[edit] Start-Up Stages-091506S.pdf (объект «application/pdf») Startup Professionals Stages.
Development Stage 1 The IDEA Stage is the process of solidifying a business idea into an executable business plan.
Typically this is done by one or more of the startup founders for no salary, since funding is unavailable. The focus at this stage should be market research and gathering data that will allow the startup founders to steer the new business startup into a differentiated market niche where resistance to market entry will be the lowest and sales can be achieved most easily.