question archive How Investors Fund Early Stage Companies Exhibit 5
How Investors Fund Early Stage Companies Exhibit 5
Subject:BusinessPrice: Bought3
How Investors Fund Early Stage Companies
Exhibit 5.1 shows an example life cycle a company funded through venture capital, with the funding amounts and valuation ultimately differing signifi- cantly based on industry norms and current valua- tions. As an entrepreneur you need to understand this cycle, who the capital suppliers are for you industry across the financing rounds, and how the investors will be evaluating your company. We will cover this in greater detail in Chapter 13, and for now the key takeaway is different players in differ- ent funding stages will have different capacities and preferences for the kind of venture they will back.
