First Stage Financing

First stage financing or otherwise known as seed financing occurs when the venture has launched and attained initial momentum, thereby increasing company sales. At this stage the company is in its infancy stage and it commences its manufacturing and selling process by launching its product in the market. The venture capitalists appear at this stage by showing interest in the company.

By this time, the management team and the officers are in place along with the line employees and other marketing/ sales staff. The funding from this stage is used to boost sales in an attempt to reach the company’s breakeven point, and create an elaborate system of distribution. During this stage, attempts are made by the firm to reduce its variable costs, increase production, and reduce its breakeven point.

First Stage Financing
First Stage Financing