Early Stage Financing
This stage includes (i) seed capital pre-start-up, (ii) start-up and (iii) second round financing.
This stage is essentially an applied research phase where the concepts and ideas of the promoter, constitute the basis of a project usually expected to end in a prototype which mayor may not lead to a business launch: This phase gradually moves toward, the development phase leading to a prototype product and then to commercialisation. The evaluation of the project by the YCb ha, to ensure that the technology of the entrepreneur matches with market opportunity.
The main risk at this stage is marketing the collateral acumen of the protozoic to take advantage of the market opportunity, awareness of competition: the timing of launching the product and so on, are important elements of the appraisal. The risk perception of Investment at this stage is extremely high, However, few VCIs invest in this pre-commercialization seed stage of product development.