![]() Venture capital investors will always have one eye on the next stage of investment. The sums involved in Series B funding are much larger than in Series A, and so investors require solid figures to back it up – proof of profitability and concrete plans for the next stage of growth.Ī business that seeks Series B funding is usually doing so to enable to launch of a new product or to take their existing product into a new territory. Series B funding follows, for businesses looking to scale up. 'Series A' funding is usually related to businesses that have revenue flow that can demonstrate product market fit, but in order for the business to employ the relevant people and invest in sales and marketing, to take advantage of opportunities that are presenting themselves, they require investment. You will, however, need to show you have a viable product or service and explain how the investment will grow sales and revenue. then you will be looking for seed funding. If you have a viable business or product but need capital to further prove out the product fit. This is the riskiest type of investment for a venture capital firm but also can realise the biggest gains. While you not necessarily need to show any revenue, you will need to convince potential VC investors that there is a need or a market for your idea. If you have a business idea but need capital to be able to produce a full business plan or prototype product, then you are looking for pre-seed funding. The types of funding offered by VC firms may vary, but usually falls under three categories Venture Capital firms specialise in these early-stage ventures and taking on the higher risks in return for the opportunity of realising huge gains. Venture Capital is a form of private equity investment that focuses on early stage, high growth businesses. In general for private equity investors, the more established the business, the lower the risk. ![]() GET YOUR FREE GUIDE Private Equity vs Venture CapitalĪll venture capital is private equity, but not all private equity is venture capital. If your business could benefit from private equity investment but you aren’t sure where to start, download our free basic guide to private equity. In this article we explore the differences between the types of private equity investment and their respective advantages and disadvantages for your business. Despite different ways of operating, all kinds of private investment firms need to realise substantial gains for their investors. For example, Venture Capital and Angel Investors are both types of private equity investment. Private equity covers many types of private investment. The world of private equity can be complex, and if your business is looking for investment it is important to consider what type of private equity investment is right for you.
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