Being able to realize one’s idea, expand a small business, or grow the capital assets of a company are three distinct challenges in their own right and can be difficult to accomplish. Early stage equity funding can help a small business with this particular obstacle.
The need for early stage equity funding is meant to help overcome roadblocks that generally pop-up for start-ups, where a business idea is viable and the demand is there but the capital to reach that target market is lacking. The equity funding that can be furnished by middle-market investors can support the short-term business goals of gaining sales or reaching a certain milestone.
Early stage equity funding can be considered in the following way; equity funding is contributed very early, almost at inception, and can also be considered “seed money.” Seed funding usually comes from the promoter or family/contacts/friends as it is important to prove the idea/concept (the idea here being that if those close to you don’t trust this business venture, who will?). Once “proven” and seen as ready to gain sales there is a need for additional early stage funding to allow for production/ distribution/ commercialization/ etc. and this is know as the First Round of Funding, or early stage equity financing.
Always make sure that you make an informed decision in all cases,
All the Best,
Capital Corp Merchant Banking 