Stages and Growth and Financing
|
Round |
Amount of Money and Purpose |
Sources of Capital |
|
Start-up |
Seed investments often less than $250k
|
Family & Friends for Seed investments Angels for Seed Investments and more. Selected handful of VC's for true startups (Others: SBIC, SBIRs) |
|
1st Round |
True 1st round, under $3 million. Initial management team Initial product line development 1st wave of sales |
Angels VC's Some Corporations (strategic investment) |
|
2nd Round |
$3 to $10 million Sales and Distribution and Support More product development |
Venture Capital Firms Corporations (Technology-focused) |
|
3rd Round or IPO |
$25 million to hundreds of millions |
Largest VC Firms Corporations Investment Banks (Public offerings) |