Here he is :-)

New Zealand Top Sites

Tablets and Mobiles Australia
Solar Panels
House for sale Realty
Love in New Zealand
Boilers and Burners

Learn To Read Stock Market Quotes Article

From Seed Capital to Angel Investors to Venture Capital - Startup Company Financing Model
By Andy Lau

Seed capital/Seed round/Seed funding

Say, 3 people decide to start a business in biotechnology. They do so by incorporating a company limited by shares. They provide the initial capital. They are the only three shareholders. They are the founders of the company. The initial capital they provide is known as seed capital. The process of such injection of capital is known as a seed round or seed funding. The amount of money involved is usually relatively small - e.g., around US$10, 000 or less. The money is primarily used to cover preliminary expenses such as market research and product development.

Angel investors/Angel round

As time goes by, the company needs further funding. The 3 founders, though with unlimited passion for their business, have limited wealth. The company is likely to still be in its preliminary stages - not generating any revenue, or with limited sales and earnings - but looks for further growth. It is not attractive enough for venture capitalists yet. This is when angel investors come in. They bridge the gap between seed capital and venture capital.

Angel investors are individuals who invest in startup businesses that exhibit high growth prospects. They are usually wealthy entrepreneurs or business executives who look to invest in companies that have a synergy with their own businesses, or that have high growth potential in its industry. Since the company does not yet have a profits track record, the risk involved is very high.

Venture capital/Series A financing

Venture capitalists provide venture capital to startup, high growth businesses with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP or LLC). A venture capital fund is a substantial pooled investment. Such funds may come from institutional investors such as pensions funds, endowment funds, insurance companies, foundations and corporations. Wealthy individuals may also participate in such funds.

Venture capitalists generally ask for convertible preferred shares. Most certainly venture capitalists will also demand a board seat(s) as this gives them more control over the company than being mere shareholders.

For more information, visit - Foreign Investment and Corporate Law in China, Hong Kong, the US.

For more information, visit - From private equity and venture capital to mergers and acquisitions, banking and finance to capital markets.

Bob image 1

Bob image 2

Related Learn To Read Stock Market Quotes Videos

Learn To Read Stock Market Quotes News

This investment mix beats the S&P 500 ? by a mile

25 Feb 2021 at 11:25am  If you want the very best equity portfolio, you?re about to learn what it is and how to put it together ... This ?ultimate? all-equity portfolio automatically takes advantage of stock-market ...


Adobe stock could double in five years, this investor says

24 Feb 2021 at 8:45pm  Tech stocks are getting beat up these days as investors cash in on some of the sector?s big gains over the past year. That trend certainly applies to software giant Adobe Systems (Adobe Systems ...


How To Day Trade Penny Stocks & 9 Important Strategies To Learn Now

24 Feb 2021 at 4:04pm  Penny Stocks & Day Trading Strategies for Beginners Usually, new investors hear about Warren Buffet and think that the best thing to do is invest long-term. However, this is not necessarily true, ...


7 websites & blogs for your stock market news fix

23 Feb 2021 at 9:12pm  Knowledge is power. Bookmark these 7 websites to stay in the know and win your share of the spoils when investing.Because the economy and the stock markets are inextricably linked, trying to invest ...


The days of easy money in the stock market are now over

23 Feb 2021 at 10:17am  Get ready for a return to normal. Lucid's SPAC and ARK Invest's ETFs carry the whiff of the late-1990s technology bubble.


5 Must-Read Lessons From Tesla's Historical Surge

19 Feb 2021 at 6:00am  Tesla's surge has been one of the greatest ones in stock market history, turning from a $40 bln to a $800 bln company in less than two years.


Top 6 Stock Market Simulators

29 Sep 2020 at 5:00pm  The crypto industry has finally said goodbye to a 3-year bear market. The new year began with a renewal of historic highs across the market spectrum. One of the reasons is that people can today use ...


Learn To Read Stock Market Quotes Links

Permalink: | Copyright © 2021 Bob All Rights Reserved

Powered by SiteBuilder Elite