subject: What is Venture Capital? What is Convertible Preferred Stock Funding and Financing? [print this page] What is Venture Capital? What is Venture Capital?
Venture capitalists provide venture capital for startup, high growth companies usually with a prospect of achieving an initial public offering in a number of years (eg 3-5 years). Venture capitalists typically invest in the form of funds that are privately held, limited partnerships (LP).
A venture capital fund is a significant investment combined. It may consist of institutional investors such as pension funds,Endowment funds, insurance companies, foundations and corporations. Wealthy individuals can also join a venture capital fund. In a Series A round of financing, it is not unusual for a venture capitalist investing in a company with capital of more than one fund.
What is a round or Series A Series A financing?
A Series A Series A financing round, or refers to a round of venture capital or private equity investments in which certainInvestors (eg, (private equity funds and / or) individuals who invest in a company through capital injection and the company specific issues (convertible preference shares) shares known as Class A shares) to the investors back.
A second round of financing as a Series B financing, and a third round is considered Series C financing round, and so on.
What are Series A convertible preferred shares?
Serie A Shares issued in a series A financing roundare called A shares. Similarly, the shares in a Series B round of financing issued shares of the series known as B, and so on.
Convertible Convertible Preference shares are shares that are converted into ordinary shares. After an IPO of the company, the preference shares) will be converted into ordinary shares (subject to any lock-up period, the preferred shareholders can sell to the general public on the stock market. Huge profits can be obtained in thismove.
Preferred Preferred stock to give preference shareholders certain rights and privileges over common stockholders
