Obtaining Venture and Growth Capital
The Capital Markets Food Chain
Consider I he capital markets for equity as a "food chain," whose participants have increasing appetites in terms of the deal size they want to acquire ( Exhibit 14.1). This framework can help entrepreneurs identify and appreciate the various sources of equity cap¬ital at various stages of the venture's development, the amount of capital they typically provide, and the portion of the company and share price one might expect should the company eventually have an initial public offering (IPO) or trade sale.