Early Stage Financing in Venture Capital

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There are three early stages of financing:

1. Seed financing. This is capital (typically less than $50,000) that is provided at the "idea" stage, which goes for product development and market research.

2. Start-up financing. This capital is used in product development and initial marketing for firms in business under one year and has not sold their product commercially.

3. First-stage financing. This is capital provided to initiate commercial manufacturing and sales.