Capital seekers at all stages need to understand: what stage they are really at, how to classify and clarify for our investors, and how to speak the language a little bit. So I want to tell you about business stages that we classify and use in our matching process in the Capital Match Point system.
First, you have the light-bulb stage. And, as a reference suggests, this is just an idea, a great idea. It could be as crude as scratched on the back of a napkin, but it has some merit to it.
Number two is where you have seed stage. Seed is where you are structuring and developing the business plan and the financials, and there is some capital expenditures going on there.
Three, there is a start-up, and a start-up is usually broken into a series. Series A, typically, a lot of times you'll see a series B when milestones are reached. Occasionally you'll see a series C and even a series D.
Number Four is early stage. Generally an early stage company is considered to be generating revenue and probably within about a million dollars, plus or minus, break even.
And number 5 is late stage company's. These company's are typically established, and mature, and looking for expansion capital.
Six, we've got a category called special situations. This is a pretty broad category, but it encompasses things like: leverage buyout propositions, mergers and acquisitions, anything at all that would enhance the company's business model, beef up the balance sheet, and add assets as well.
Now, if you are a capital seeker and you are not sure what category you fit into exactly, give us a call at the Capital Match Point. That is what we're here for. We look at companies all the time and we'd be glad to help you sort this out. It's important to know which stage you're in, so that we could target you to the correct capital provider.