How finance categorizes enterprises
This is the first stage of venture capital, often to finance the early development of a new idea, product or service. May be used for product development, market research, building a management team or developing a business plan
This stage of financing is similar to the seed stage but tends to take place after a product or service is launched and a business plan is developed. May be used to fine-tune the product or service or build out the team
This stage of financing is made to companies that have customers and money coming in but which may not yet be profitable or have breakeven cash flow. An early stage investment may support a company’s customer acquisition, marketing, business development or production
This stage of financing is made to companies that are cash flow positive. It enables companies to expand product or service offerings and enter new markets
This stage of financing is made to companies that are ready to go public after products or services have gained substantial market share. Financing may be used for steps toward the IPO, including mergers and acquisitions driving out competitors. Sometimes referred to as mezzanine or bridge stage funding
Refers to a startup company that already has money coming in from customers or business activities. A post-revenue company may or may not be profitable. Investments may help a post-revenue company achieve scale or faster growth
Refers to a startup company that does not yet have money coming in from customers or business activity. In a pre-revenue state, a company may be seeking investments for product development or hiring staff
These are companies that have held an initial public offering and whose shares are traded on a stock exchange or over-the-counter market where individuals or institutions can purchase shares. Public companies are subject to periodic filing and other obligations under federal securities laws
Privately held companies are owned by a small number of shareholders and are not publicly traded on a stock exchange. Privately held companies can exist as sole proprietorships, partnerships or corporations. They have fewer reporting requirements than publicly traded companies
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