Venture capital funding for entrepreneurial ventures is usually available only after the start-up has become a going concern and established a track record.

Question

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Although bank financing, public financing, and venture capital are important sources of small business finance, these types of financial support are typically available only after a company has started to conduct business and generate sales. Once a venture has established itself as a going concern, other sources of financing become readily available. Banks, for example, are more likely to provide later-stage financing to companies with a track record of sales or other cash-generating activity. Start-ups that involve large capital investments or extensive development costs or those on the brink of rapid growth often seek venture capital.

Venture Capital Funding for Entrepreneurial Ventures Is Usually Available Only