Last update: 06/03/2020
A business may raise capital through holding funds and venture capital firms, which combine public and private resources and invest in innovative companies that exhibit large growth potential.
This type of funding applies to small or medium size businesses at any stage of their development; pro-seed, seed, early/later stage or even mezzanine financing just before a company’s Initial Public Offering. Besides equity, venture capital firms may contribute in management, mentoring and developing of cooperation networks.
In short, a company that raises capital through private equity has the following options: