VC Funding (Series A and Beyond)
Venture Capital is financial capital raised by an early-stage, high-growth, high-potential company that occurs after a startup has gained sufficient traction and has passed the breakeven point.
The money acquired in 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 to finalize and smooth out your product, acquire a larger number of customers, enter new markets, or go about 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 USD as opposed to Seed Funding which invests anywhere from a few thousand to one million USD.
The heftier investment also means that a Venture Capital firm comes with several strings attached – these can be a percentage of returns, significant ownership, and control over the direction of the company. Whenever you're getting funded -- review your equity contract thoroughly!
While those strings and costs of taking on Venture Capital are there – it doesn’t mean that you shouldn’t strive to achieve funding. 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.