Funding to grow business sufficiently to outsiders
First step towards exposing business to investors
Angel
Give money without expecting much returns
May invest in idea/ plan, but for smaller amount of money
Some are professional angels assist in developing business and
access to further funding
Venture capital
The real thing
3.
Equity investor (Cash for Shares)
Early-stage, high-potential, growth companiesin the interest
ofgenerating a returnthrough an eventual realization event such as
an IPO or trade sale of the company
Compliment bank lending/facilities to finance innovative
(high-risk) SMEs at various stages of life cycle (seed to
expansion/late)
Provide alternative source of financing especially for early
stage SMEs in ICT sector, biotech, ..
Enhance bankability of SMEs,entrepreneurship, corporate
governance, marketing, product development and technology
enhancement.
4.
New companies with limited operating history
Too small to raise capital in the public markets
Too immature to secure a bank loan or complete a debt
offering.
In exchange for thehigh riskthat venture capitalists assume by
investing in smaller and less mature companies, venture capitalists
usually get significant control over company decisions, in addition
to a significant portion of the company's ownership (and
consequently value).
5. Market Expansion Product Expansion Listing or Sale
Commercialization TIME ConceptAlpha BetaEarly Adopter Seed Early
Expansion Late FUNDING (RM)
