Venture Financing





Venture Financing Stages

Stages of entrepreneurial firm development
and venture capital funding






Venture Financing Bootstrapping Business Angels Venture Capital Firms Venture Investing Dealing With Banks Venture Funding Stages Venture Financing Stages Statistics  

Many venturepreneurs would receive more serious consideration from investors and financial angels if they would realize that they are selling a financial package to the financial marketplace, rather than their product or service to a consumer.




Investors are constantly comparing one investment against another and ranking them in numerous categories


Investor Returns, Timing, and Cost of Capital






Initial Funding




Pre-seed Stage

A relatively small amount of capital is provided to an inventor or entrepreneur to prove a specific concept for a potentially profitable business opportunity that still has to be developed and proven. The funded work may involve product development (as opposed to "pure" research), but it rarely involves initial marketing.

Seed Stage

Financing is provided to newly formed companies for use in completing product development and in initial marketing. These companies may be in the process of being organized or may have been in business a short time. In either case, products have yet to be sold commercially. Generally, such businesses have assembled key management, have prepared their initial business plan, and have conducted at least initial market studies.

Early Stage (First Stage)

Financing is provided to companies that have expended their initial capital and now require funds to initiate commercial-scale manufacturing and sales.


About VC

Yin-Yang of Venture Financing

VC Basics

Venture Funding Basics

Debt vs. Equity

VC Language

Business Angels: Pros and Cons

Best Advice to Entrepreneurs

Startup Business Plan

DOs and DON'Ts

Executive Summary






Growth & Expansion Funding




Second Stage

Working capital is provided for the expansion of a company which is producing and shipping products and which needs to support growing accounts receivable and inventories. Although the company clearly has made progress, it may not yet be showing a profit at this stage.

Third Stage

Funds are provided for the major expansion of a company which has increasing sales volume and which is breaking even or which has achieved initial profitability. Funds are utilized for further plant expansion, marketing, and working capital or for development of an improved product, a new technology, or an expanded product line.

Bridge Financing (also Later Stage or Expansion Stage)

The firm is mature and profitable, and often still expanding. Financing is provided for a company expected to "go public" within six months to a year. Often bridge financing is structured so that it can be repaid from the proceeds of a public offering. Bridge financing also can involve restructuring of major stockholder positions through secondary transactions. This is done if there are early investors who want to reduce or liquidate their positions. This also might be done following a management change so that the ownership of former management (and relatives or associates) can be purchased prior to the company's going public.


Venture Planning

Business Planning

Venture Evaluation


Achieve Much More

Reduce Risks

Stronger Business Design

High-Growth Startup

5 Rules  ▪  11 Keys

Lean Startup

Private Placement

Private Placement Memorandum

VC Investor Pitch



How To Deliver

Example: IG Air







Vadim Koelnikov personal logo

Smart & Fast

Innovative Entrepreneur






Vadim Kotelnikov

Give innovative entrepreneurs a venture capital fund, and you'll feed few of them for a while. Give innovative entrepreneurs Innompic Games, and you'll feed all of them for centuries ahead!

Vadim Kotelnikov, founder of 1000ventures - personal logo VadiK

Inventor Business e-Coach

Author Innoball

Founder Innompic Games icon