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ipledg.com Stages of Venture Capital Financing The requirements of funds vary with the life cycle stage of the enterprise. Even before a business plan is prepared the entrepreneur invests his time and resources in surveying the market, finding and understanding the target customers and their needs. At the seed stage the entrepreneur continue to fund the venture with his own or family funds. At this stage the funds are needed to solicit the consultant’s services in formulation of business plans, meeting potential customers and technology partners. Next the funds would be required for development of the product/process and producing prototypes, hiring key people and building up the managerial team. This is followed by funds for assembling the manufacturing and marketing facilities in that order. Venture capital was started as early stage financing of relatively small but rapidly growing companies. Different venture capital firms have different attributes and aptitudes for different types of Venture capital investments. 1. 2. 1. 2.

EBAN - European Business Angels