Definitions: Start-Up or Seed Stage.
The Company has yet to generate revenue, but is essentially ready to go to market. Market studies may have been completed, a management team in place and a detailed business plan developed.
Early or Developmental Stage. The company may be in the early stage of expanding commercialization, and is need of capital for inventory, advertising and marketing. Usually the company has a strong
management team in place, is generating revenues but may not show profits yet. Revenue Stage.
The company has increasing sales, is near break-even or is profitable and needs funds for further expansion, marketing or working capital. The company may be also be looking for strategic acquisitions.
Buyout or Mature.
The company needs capital to finance an acquisition, a merger, or other change in ownership. Alternatively, the company may have gone through a problem period and needs capital to turn the company around. The effect of the infusion of capital is clearly defined in a business plan.
Debt/Mezzanine.
Usually a revenue stage company needing capital with insufficient assets to collateralize, or does not want to achieve further dilution by raising equity. Alternatively, a mature company that is unable to qualify for conventional debt, or needs more flexibility.
Real Estate.
A Commmercial Real Estate Project.
Turnaround.
The company may be in need of capital to effect a change from unprofitability to profitability. The company may have gone through a problem period and needs capital to turn the company around. The effect of the infusion of capital is usually clearly defined in a business plan.
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