Here is a Venture Capital company, it is an interesting example since it invests money to finance early stage and growth stages of business startups.
This private investor risks invested capital to seek profit by increasing the value of their ownership rights in companies seeking financing.
The VC invests in early stage businesses. They are companies that have passed the startup phase, and are beginning to generate revenue. The VC also invests in funding rounds depending on the stage of the company.
The first round is the official round for a startup. The company seeking funding is raising capital for proof of concept. There are subsequent rounds of financing by the VC, like B,C, etc.. There is no explicit rule for what defines each stage of a company, but startup tend to be categorized as seed, early stage, mid, and late.
Most VCs firms invest in companies in one or two stages. Some manage multiple funds geared toward different stage companies.
