Later Stage Funding

Later stage funding is normally for a company expecting to go public usually within a year. Often this funding is structured so that it can be repaid from proceeds of the public offering and non-included in any IPO sale restrictions.

Later stage funding investments are for companies with:

  • More than $25 million in gross revenue potential.
  • Large National or International market potential.
  • Management teams with successful track records.

Second, third and mezzanine financings are all considered later-stage and funded by venture capital investors and/or, in the case of mezzanine financing, can also include corporations or strategic investors.

As in first-round financings, valuation is a function of the company’s development to date relative to similar companies in the industry and relative to the last round of financing.

onEntrepreneur

onEntrepreneur is an online magazine centered on the world of business, entrepreneurship, finance, marketing, technology and much more. We are regularly updated – sign up with our newsletter to send the updates directly to your inbox.

Leave a Reply

Your email address will not be published.