Types of Funding

1). Seed Capital.

2). Startup Capital.

3). Early Stage Capital.

4)/ Expansion Capital.

5). Late Stage Capital.

What is Seed Capital?

If you're just starting out and have no product or organized company yet, you would be seeking seed capital. Few VCs fund at this stage and the amount invested would probably be small. Investment capital may be used to create a sample product, fund market research, or cover administrative set-up costs.

What is Startup Capital?

At this stage, your company would have a sample product available with at least one principal working full-time. Funding at this stage is also rare. It tends to cover recruitment of other key management, additional market research, and finalizing of the product or service for introduction to the marketplace.

What is Early Stage Capital?

Two to three years into your venture, you've gotten your company off the ground, a management team is in place, and sales are increasing. At this stage, VC funding could help you increase sales to the break-even point, improve your productivity, or increase your company's efficiency.

What is Expansion Capital?

Your company is well established, and now you are looking to a VC to help take your business to the next level of growth. Funding at this stage may help you enter new markets or increase your marketing efforts. You should seek out VCs that specialize in later stage investing.

What is Late Stage Capital?

At this stage, your company has achieved impressive sales and revenue and you have a second level of management in place. You may be looking for funds to increase capacity, ramp up marketing, or increase working capital.

Thanks. 

Sivasankaran. K