Third Stage Capital
In venture capital terminology, the term Third Stage Capital refers to the financing stage of a new company that involves further expansion and the increasing of market share. This is generally achieved through marketing and increased product sales funded by Third Stage Capital.
For example, Third Stage Capital is generally raised by a commercial venture which has already proven itself. The company will probably be in the process of increasing its business through building up its sales force and distribution system, optimizing its production process which will lead to reduced costs, and developing follow up products or services for its existing products. In addition, an evaluation of management is generally done to determine if management can cope with the increase in the size of the business. Third Stage Capital generally falls into the Mezzanine Financing part of the venture capital progression and therefore comes pre-IPO because it usually takes place before the company goes public in an Initial Public Offering.