Early-Stage Financing

  • Seed Capital – Capital provided by an investor to prove a concept and qualify for “start-up” capital.
  • Start-up Capital – Money needed to develop an idea into a finished product.
  • First Stage Financing – Funding provided to companies that have expended their initial capital, and require funds to start full-scale manufacturing and sales.

Expansion Financing

  • Second-Stage Financing – Working capital for the initial expansion of a company that is producing, shipping, and has growing accounts receivable and inventories.
  • Third-Stage or Mezzanine Financing – Financing provided for the major expansion of a company whose sales volume is increasing and that is breaking even or profitable. These funds are used for further plant expansion, marketing, working capital, or development of an improved product.

Bridge Financing

  • Interim financing used to solidify a position until more permanent financing is arranged.
  • Short-term financing that will be repaid when the IPO occurs.

Acquisition / Buyout Financing

  • Acquisition Financing – Funding to acquire or merge with another business.
  • Leveraged Buyout Financing – Provided for the strategic purchase of other product lines, divisions, or companies.