Early-stage financing

sunandaC

Sunanda K. Chavan
Early-stage financing


Seed financing
an 'applied research' phase where the concepts and ideas of the promoters constitute the basis of a pre-commercialization research project, usually expected to end in a prototype which may or may not lead to a business launch.

Small amount to prove concept

Market research, product development

Very few VCls invest in this pre-commercialization/ seed stage of product development

This phase gradually moves towards the development phase leading to a prototype product testing and then to commercialization

Startup financing

Product development and initial marketing complete

Business plan and management team in place

Commercial manufacturing has to commence i.e. the product/service is being
commercialized for the first time

The risk perception is very high

First-stage financing


Expended initial capital

Funds needed to go full-scale in manufacturing and sales


 
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