Venture Financing Chain

Financing has always been an important topic in the activities of companies, especially start-ups. Entrepreneurs have always faced the problem of how to obtain the funds they need? This issue becomes more important in start-ups and small businesses because the risk of investing in these areas is very high and banks and large companies are sometimes reluctant to finance those active in this field.

In addition, ad hoc or sector-specific support can create problems for start-up companies, so these companies are looking for a financial supply chain that will help the company reach maturity and relative stability.

Today, various financing methods have been created and developed for such companies all over the world. The following figure introduces the components of the financing supply chain and shows the appropriate time to use them:

Founders, Friends & Family (3F)
Business Angels
Venture Investors
Banks
Initial Public Offering (IPO)

Each of these methods has its own unique characteristics, which will be discussed in subsequent articles.