14.1. General Overview of Early Stage Financing

Each entrepreneurial project is developed through several phases according to the life cycle time of a company. It is easy to identify the development phase by the problems that occur at different points in the firm’s structure. During this phase the venture capitalist is considered more than a simple supplier of risk capital and he ends up as a financial intermediary able to support and improve the growth of venture-backed companies. How and why the venture capitalist decides to invest in a business idea that has to be defined and planned before the company even exists are reviewed in this chapter.

To understand the investment activity in risk capital, it is necessary to analyze the key management ...

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