Follow-on Funding
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.
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.
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.
Key Takeaway
Follow-on funding is crucial for a business wanting to grow and succeed. It provides the money needed to expand and become profitable.