Operation of extraordinary financial transaction related to investment and financing activities to support the creation and development of companies with high growth potential and with a high technological component.
Through Capital Venture operations carried out by institutional and non-institutional investors, the company can enter into global networks and make use of the product, market and promotion skills of these sectors, as well as of course making use of the invested capital.
Depending on the development phases of the company to be financed, there are various types of financing in Venture Capital:
1) FUNDING TO THE INITIAL PHASE – START-UP
Seed financing
Financing the business idea. It serves to finance the initial development of the product or MVP (Minimum Valuable Product), and the related tests and market research.
Early early-stage financing
Funding given in the early stages of start-up and development of entrepreneurial activity; it is normally granted to complete the development of the product, to test it on the market and to understand how the market accepts it, “MarketTraction”
Early stage financing
Funding granted to companies that have spent the initial capital in developing and testing the product on the market, and that now need new funds to start production on a large scale, and implement marketing and sales.
2) FINANCING FOR EXPANSION AND DEVELOPMENT – GROWTH CAPITAL
Late early stage financing or financing for the development and growth phase,
This is the capital used to finance the expansion of a company, which is producing and selling its products, has growing revenues, but typically still does not make profits.
Third-stage or Growth financing,
These are funds granted for a substantial expansion of the company, whose turnover is growing and which has reached the break-even point. These funds are used to finance the implementation of production, improve the product, new market research and strengthen sales with expansion to new markets.
Bridge financing (transition financing)
It is granted to companies that expect to get started in the stock exchange. It is often structured to be repaid with the proceeds of public subscription.
3) FINANCING FOR ACQUISITIONS AND RESTRUCTURING – M& A.
Acquisition financing (financing for a company acquisition)
They are funds granted to a company to finance the acquisition of another company
Management buy-outs / management buy-in /leveraged buy-outs (MBO / MBI / LBO)
It is related to funds granted to a group of operational managers to obtain control of a product or market line, which may be in any phase of development, of the company in which they are employed or of another.
Replacement capital
Funds granted for the reorganization of the shareholding structure and corporate restructuring (turnarounds).