This document outlines the typical stages of financing for a startup venture: Seed stage involves early financing up to $500k from founders, friends/family, and angels to prove business concepts and market fit. Venture stage includes Series A/B/C financing from $500k to $50M from VC/PE firms to fund product development and working capital. Mezzanine stage provides $5M to $50M in bridge capital, debt, or equity from VCs/PEs for growth, expansion, and acquisitions. Balanced stage involves $50M+ from public markets, major PE firms or acquirers for IPOs, buyouts, or company acquisitions once the business is proven

1. STARTUP FINANCE
“STAGES”
Seed to Venture to Mezzanine to Balanced

2. STAGES OF GROWTH/FINANCING FOR A
VENTURE – TERMINOLOGY AND
DEFINITIONS
SeedEarly Stage Financing for
proving business concepts
Extremely High Risk
(success = 1/25)
Idea and Market Proof of
Concepts
50k-500k
Typical Investors: Founders,
Family, Friends,
Benefactors, Angels &
Angel Groups
AKA – Seed Round and/or
Angel Round
Venture
Standard Venture Capital
Financing for proven
business concepts
High Risk (success = 1/10)
Funding of Actual Product
Development and Working
Capital
500k – 50M
Typical Investors: VC firms,
PE firms, Community
Business Banks
AKA – Series A (500k-5M),
Series B (1M-10M), Series C
(5M-50M)
Mezzanine
Pre-IPO Growth Capital for
a proven business, usually
in the form of debt or debt-
like instruments
Low Risk (success
expected)
Funding Working Capital ,
Business Expansion and
Acquisitions
5M-50M
Typical Investors: VC firms,
PE firms, Community
Business Banks
AKA – Bridge Capital,
Mezzanine Capital, Equity
Capital, Senior Debt
Balanced
IPO Capital, Buyouts or
Acquisition of a proven
business
Low Risk
Funding Growth, Working
Capital and Acquisition of
Equity in the Business
50M+
Typical Investors: Public
Markets, Major PE Firms,
Strategic Acquirers
AKA – IPO (Initial Public
Offering), LBO (Leveraged
Buyout), ESOP (Employee
Stock Ownership Program)