Venture Capital Process

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Venture Capital Process

SeedMoney

1st RoundFinancing

2nd RoundFinancing

Clean-upFinancing

Year 1 Year 3 Year 5

$50k $1 million $3 million $1 million

Milestones and Benchmarks

Private InvestmentVenture Capital Firms

Stages of Financing

EBD 481, Fall 2006Galbraith, Week 2

Exit Strategiesn Acquisition -- least costly

of exit strategiesn Public Offering -- most

costly, but exciting and maintain some control

n Joint Venture --intermediate strategy

n Equity Buyback --expensive, but way to get venture capitalists out of business

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