Founders' expertise and track record in the industry The team’s cohesion, commitment, and ability to execute the business plan The alignment of the founders' vision with the investors’ goals.
As ABC continues to grow, it may raise additional rounds of funding (series B, C, etc.) at higher valuations, with XYZ potentially participating in these rounds to maintain its ownership stake. The ultimate goal for both the founders and investors is to achieve a successful exit through an acquisition or an IPO, providing a return on investment for the VCs and a payout for the founders and employees.
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Location and Market.
It is an option that exists between independent funding sources like friends, family, or corporate contributors and вЂtraditional’ low-cost capital resources like SBA loans. Approximately 80% of the time, VC funding serves to secure and scale infrastructure (e.g., manufacturing, marketing, sales) and bolster financials (e.g., working capital). 1.
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