Follow-on Funding
Content
Definition
Follow-on Funding is additional investment made in a company following initial capital infusions, to support further growth, development, or to bridge the company to profitability.
Usage and Context
Follow-on funding is common in startups. It helps them grow after the first investment. This money can go towards making new products or expanding the business.
Frequently asked questions
- What is the capital funding method? Capital funding methods include getting money to grow a business. It can come from bank loans, investors, or selling company shares.
- What are three main sources of funding for capital projects? Three main sources are bank loans, venture capital, and government grants. These help pay for big projects that need a lot of money.
- How can a business increase capital? A business can increase capital by taking loans, finding investors, or using profits to reinvest in the business. This helps the business grow and make more money.
Benefits
Follow-on funding helps a business grow without stopping. It can make a business profitable and bigger. It also helps businesses survive tough times.
Conclusion
Follow-on funding is crucial for a business wanting to grow and succeed. It provides the money needed to expand and become profitable.
