Venture Funding Stages Initial Funding Pre-Seed Stage. A relatively small amount of capital is provided to an investor or entrepreneur to prove a specific concept.
Financing is provided to companies for use in product development and in initial marketing .
These companies may be in the process of being organized or may have been in business a short time. In either case, products have yet to be sold commercially. Generally, such businesses have assembled key management, have prepared their initial Business Plan, and have conducted at least initial market studies. Financing is provided to companies that have expended their initial capital and now require funds to initiate commercial-scale manufacturing and sales . Expansion Funding Second Stage.