When entrepreneurs post business summaries on FundingUtah.com, I want them to be able to list what stage they are at in their companies development. So I needed to find out how the industry categorizes companies that are seeking financing.
I found a great powerpoint from InvestNebraska.com that outlines the types of private equity that are available for entrepreneurs.
I was disappointed to be reminded about how little venture capital flows into seed stage companies. The data shows that in 2003, venture capital went into companies as follows:
- Startup/Seed Stage, 2%
- Early Stage, 18%
- Expansion Stage, 55%
- Later Stage, 25%
Of course, seed stage companies need relatively little capital while later stage companies need very large rounds.