The type of financing that occurs during the development stage of a venture's life cycle is typically referred to as:
A)seed financing
B)startup financing
C)first round financing
D)second round financing
E)mezzanine financing

Question

Quizplus · Accepted Answer

Seed financing is the type of financing that occurs during the development stage of a venture's life cycle. This stage is characterized by the need for capital to conduct research and development, create a business plan, and develop a prototype. Seed financing is usually provided by family and friends, angel investors, or specialized seed funds. Startup financing (B) refers to the capital needed to start a business, while first round financing (C), second round financing (D), and mezzanine financing (E) are typically provided to ventures that have already generated revenue and are looking to expand or prepare for an exit.

The Type of Financing That Occurs During the Development Stage