Some of the most profitable companies with revolutionary products in both the United States and Canada began as start-ups. After an initial phase of growth, where products and services are refined, eventually a massive influx of capital is needed to broaden an emerging company’s scope. This phase of growth normally involves the acquisition of venture capital, which is a type of funding provided by an investor or group of investors. Our staff at RJ Funding Services (Rafter J Funding) can help budding companies secure the funding they require, including venture capital, by placing candidates for funding with our network of investors and lenders.
When Venture Capital is Necessary
Once a business entity has developed a propriety product or service and has developed some brand recognition, capital will be necessary to expand the company’s reach to a wider consumer base. This is where venture capital can be especially beneficial. The influx of funding from venture capital can be used for national marketing and advertising campaigns.
Other notable benefits for receiving venture capital are opportunities to increase production. Increasing production of a product might require additional manufacturing equipment, employees, and shipping centers. It may also require a trained and dedicated customer service department.
When a company has reached a stage where growth and increased profits are contingent on access to a large amount of capital at once, this type of funding is most often useful. Venture capital essentially can prevent a company from experiencing stagnation or an inability to meet consumer demands.
Growth Stage Venture Capital
Venture capital in the growth stage is one of the most common forms of this type of funding. Normally ranging between $5 and $25 million—depending on the industry and company—growth stage capital is meant for helping a company establish some brand recognition and expand its consumer base. The growth stage of a start-up that has received venture capital can last for a couple years, and many companies take advantage of this time and the capital acquired, to develop methodical corporate procedures and build up its executive leadership.
Late Stage Venture Capital
This type of venture capital typically does not exceed $50 million. In many cases, funds over $50 million are raised by initial public offerings once a company decides to become a publicly traded entity. Late stage venture capital, however, is beneficial for corporations where money needs to be reinvested back into the company for maximizing future profits, paying off debts, and streamlining production and procedures.
Our experienced funding experts can help you navigate the world of alternative and non-traditional funding to meet your exact business needs. We serve clients throughout the United States and Canada. Call us today at (325) 942-8685 to speak with our experienced staff.