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Entrepreneurial Ecosystem (view source)
Revision as of 15:59, 11 November 2015
, 15:59, 11 November 2015→Venture Capital Investment by Stage
===Venture Capital Investment by Stage===
Start-ups are classified by Venture Capital firms into 4 stages [http://www.pwcmoneytree.com/Definitions/Definitions]: seed stage, early stage, expansion stage, and late stage. These stages of development help investors determine the size potential return of the an investment and the wait of the return.
Moneytree, a collaboration between PriceWaterhouseCoopers[http://www.pwc.com/] and the National Venture Capital Association [http://nvca.org/] defines these stages as:
#'''Expansion Stage''': "Product or service is in production and commercially available. The company demonstrates significant revenue growth, but may or may not be showing a profit. Usually in business more than three years."
#'''Late Stage''': "Product or service is widely available. Company is generating on-going revenue; probably positive cash flow. More likely to be, but not necessarily, profitable. May include spin-offs of operating divisions of existing private companies and established private companies."
Historically, the majority of Venture Capital investment, in terms of both number deals and total dollar amount, occurs once a company reaches its early stage. Seed stage companies receive minimal investment simply because they are not often developed enough to be of legitimate promise to investors.
In Quarter 3 of 2015, Seed Stage ventures received 1% of total venture capital investment in dollars, early stage ventures brought in 33%, expansion stage firms 39%, and late stage received 27% of capital investment.
===Venture Capital Investment by Industry===
