Venture capital, as the name suggests, is the highest risk financing, but the profits we can expect are definitely worth it. It consists in providing capital to a company at an early stage of its development in exchange for the VC funding taking over a significant part of its shares. The most important aim of this investment is to achieve a profit resulting from the increase in value of the company by reselling its shares after a certain period of time.
VC divided into several stages, of which five usually mentioned. The first phase called the seed stage. This is often not the official stage, but a discussion and analysis of the project presented. This is when the team members involved try to determine whether the founder’s idea can turned into a product. Funding usually comes from a small circle of family and friends and does not include equity. The next phases are the start-up and early development phases. This is when capital comes in. At this stage, investors exposed to much less risk as the company’s product or service will have already vetted. The last official round of funding by VC blockchain is the expansion phase.
The first one is Seed funding process usually small and through R&D of an initial product. Seed accelerators out there, like that accept applicants, provide seed capital and offer an opportunity major investors. The Funding may used for market research and development of product.
Startup stage is likewise to seed stage. Analysis of conducting market research for product development to acquire the customer base. In this stage we go in more details to improve further research processes.
Early Development Phases
At this stage funding will go to production phases and deepens more market research to add value and improve sales. Mainly to reach audience at bigger level.
In growth stage, we can multiply our business and inject it to more markets. Venture capital funding help to fuel our growth in every aspects. VC funding played important role in startup and help to grow more exponentially.
Technology – VC funding using Blockchain Technology, to grow in further phases to fire-up the startup.