Early Stage Funds

Have funds to invest? Invest in a Start-up Company with Financially Viable Business Plan

Early Stage Funds are Venture Capitalists who invest in companies that have not started commercial marketing and production activities, but have a feasible business proposition requiring additional capital to make their foray into the commercial world.

At this stage, the companies have already developed a product prototype but have not yet started generating revenue. They usually have a definitive business plan and have assembled a key management team comprising mainly of the founders. Such companies require additional capital to start their commercial production and selling activities, as well as initial marketing.

Until now, the start-ups grow with the help of seed capital from the owners themselves and in some cases, seed capital funds. However, at this stage these companies can use up large amounts of capital to initiate commercial manufacturing and sales which makes it necessary for them to look for outside sources such as Early Stage Funds.

Early stage investors are those that help the start-up companies in initiating their manufacturing activities, thereby starting their revenue flow. The amount of capital invested by Early Stage Funds in these companies is fairly less in comparison to investment by Later Stage Funds. Early Stage Funds not only provide capital, but also bring in experience and industrial contacts that foster faster development of the enterprise.

Challenges

  • Difficult to identify companies with the 'winner' product idea, which can be converted into commercially viable businesses
  • Requires a long term commitment from the investors before they can start expecting profits on their investment
  • Insufficient due-diligence prior to purchase may result in disaster post-acquisition

Solutions

  • Providing large database of start-up companies that have a feasible business idea and profitable value proposition
  • Conducting a comprehensive risk-return analysis - thereby separating the high risk ventures from the relatively lower risk ones
  • Help developing an in-depth understanding of the company's business

Benefits

  • Easy recognition of financially viable enterprises and ascertaining the true value of the investment
  • Professional advice coupled with high quality research helps maximize the returns on investments
  • Provide all the essential services to facilitate smooth operations and ensure that financing is done in a smooth and efficient manner

Sign up as an Early Stage Fund and learn more about projects that are best suited for your investment profile.