VC Funding

It is private equity capital provided as seed funding to early-stage, high-potential, growth companies (startup companies) or more often it is after the seed funding round as a growth funding round (also referred to as series A round). It is provided in the interest of generating a return on investment through an eventual realization event such as an IPO or trade sale of the company.

This kind of financing option is available for business with new ideas and having strong market prospects. In this kind of funding owner/ promote dilute its shares and gets fund to start and manage its venture. This is cheapest source of funding for a start-up.