Company Development Stage
Your capitalization efforts should be aligned with your company’s current stage of development.
The financial condition, strategic focus, realistic funding alternatives, and valuation approaches differ substantially for businesses in different development stages, as the following table illustrates.
Building your capitalization plan based on your current development stage will help you focus on the capitalization alternatives that are most likely to result in success based on your unique situation. This is a fundamental aspect of our process, and is similar to four physical stages of human development having a natural order of progression – birth, crawling, walking, and running. Trying to jump over a development stage sets you up for failure.