A. EARLY FUNDING SUPPORT (PRE-SEED FUNDING)
Pre-seed capital is a minor investment that entrepreneurs need to make at the outset of their businesses in order to get them off the ground. Pre-seed financing is typically utilized to create a product at an early stage and to raise funds in subsequent fundraising rounds. FACTSHEETINC assists early-stage businesses in obtaining funding from angel investors, micro-VCs, business loans, and grants. The notion is that by starting to raise funding early on, start-ups may cut the time and cost of bringing a new product or service to market. Entrepreneurs can also use pre-seed capital to test their company models and present their ideas before seeking traditional investment.
E. BUSINESS GROWTH WORKING CAPITAL
Growth Working Capital is a sort of capital that enables late-stage businesses to extend their operations, increase their client base, and enter new markets. Companies at this level often have healthy cash flow and large revenue. Late-stage enterprises typically seek growth financing in the form of stock or debt. Equity financing is the most popular method of growth finance since the firm is already producing revenue and has established its market position, which encourages investors and venture capitalists to participate.
There are four types of business growth capital:
ü Angel Investment: A little sum of money contributed by those who are not actively involved in the business yet want it to flourish.
ü Convertible Debt: A type of debt that can be converted into stock at a discount if the company meets certain milestones or objectives
ü Private Equity: A type of investment in which high-net-worth individuals and families contribute money to invest in early-stage companies
ü Venture Capital: An investment made by venture capitalists, who are typically wealthy individuals or groups, into early-stages finesses in order to gain an ownership stake and receive dividends or other returns overtime.