Tham khảo tài liệu 'markets, techniques, and deals_10', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 224 CHAPTER 15 Financing growth growth . After commercial validation of the product or service offered by the target company the venture capitalist intervenes and increases production and the selling and marketing capacity. The company is still medium or little but the growth capacity of the business idea has improved. It is important to emphasize that the financial resources invested are reduced because the company has already acquired a good part of the market and selling guarantees the resources needed for the production process. 2. Third stage financing Figure illustrates how third stage financing supports the consolidation of the development reached by the venture-backed company. At this point it has passed the initial development phase and wants to consolidate and enlarge its market position. The venture capitalist contributes a large amount of money to protect the target company s market position and to support the management during the design of new growth plans. These types of plans involve the launch of new product enlargement or diversification of manufacturing and distribution activities or the acquisition of a competitor. Consequently it becomes necessary to collect new funds dedicated to research and development marketing and production. 3. Fourth stage or bridge financing Figure illustrates the maturity stage of a company s life cycle. By this time the target company has grown considerably by enlarging the markets reached and the range of products or Life cycle time of a company consolidation stage. Advantages for venture-backed companies 225 services offered. Financing is geared toward going public or for a planned trade sale with venture capitalist support to facilitate the next steps. The venture capital financing can also bridge financial difficulties and the quotation of the company. In this phase the level of risk is very low with occasional financial operations that involve large amounts of money. Expansion deals involve not .
