First Stage Capital
In venture capital terminology, the term First Stage Capital refers to the first round of funding in the progressive development of a new company. First Stage Capital follows the early seed capital stage and the start-up stage.
For example, first stage capital represents the venture capital provided to an entrepreneur that has already produced an operational business or marketable product. First Stage Capital also refers to the capital provided to the entrepreneur to begin commercial production and the marketing of their product. This type of venture financing does not include expenses incurred for expansion of the business, reduction of risk or acquisition costs. First Stage Capital makes up the first of various stages in the venture financing of a commercial enterprise and represents the first step toward the company's initial public stock offering.