Capital in the different phases of your company's life
Depending on the moment when the investor adds to the company's capital, we can distinguish between:
Seed capital, or starting capital, is the capital injected into the company during the study phase. The idea still needs to take shape and be structured.
We also talk about set-up capital. This is capital injected into a company being set up, or which has already completed the early steps. These companies have often not sold any products and cannot progress due to this fact.
This is capital intended to finance the development of an existing company in a period of rapid expansion. We also talk about growth capital.
This is transmission capital required for an MBO or an MBI. In case of an MBO, it is the management team in place which tries to buy the company. In case of an MBI, the directors try to buy a company from outside of said company.