The common stages of investment associated with private equiry/venture capital funding of business start-ups.

The common stages of investment associated with private equiry/venture capital funding of business start-ups.

The common stages include:

• Seed – to allow a business concept to be developed, perhaps involving the production of a business plan, prototypes and additional research, prior to bringing a product to market and commencing large-scale manufacturing
• Start-up – to develop the company’s products and fund their initial marketing. Companies may be in the process of being set up or may have been trading for a short time, but not have sold their product commercially
• Expansion – grow and expand an established company. For example, to finance increased production capacity, product development, marketing and to provide additional working capital. Also known as “development” or “growth” capital.