Venture Capital Funding
Venture capital is raised by an early-stage, high-growth, high-potential company. It differs from seed funding because it comes after a startup has gained sufficient traction and has passed the breakeven point.
The money acquired from a venture capital investment is meant to fuel continued growth for your company and increase your overall reach and potential. The money can be used for any number of reasons: acquire more customers, enter new markets, or hiring a larger and more effective team.
Venture capital investments tend to be much larger than seed investments. Most venture capital investments range anywhere from several million to several hundred million dollars.
The heftier investment means that money from a venture capital firm usually comes with strings attached—these can be a percentage of returns, significant ownership, and control over the direction of the company. Whenever you're getting funded, be sure to review your equity contract thoroughly.
Securing funding at any stage lends an immense amount of credibility to your company, alerting consumers and investors that your business is serious and has a notable degree of potential.