(a) ‘It is an equity-based investment in a growth-oriented small to medium business to enable the investor to accomplish objectives in return for…

‘It is an equity-based investment in a growth-oriented small to medium business to enable the investor to accomplish objectives in return for minority shareholding in the business.’

This investment has to be carefully evaluated and analysed by an entrepreneur to find out the stage at which he/she requires this investment to assist in.

Identify the type of capital discussed in the above lines.

Explain the three stages included in ‘Early Stage Financing’ if the capital identified in (i) above is required at this stage.

‘An affluent individual who provides capital for a business start-up and early stage companies having a high-risk, high-return matrix usually in exchange for convertible debt or ownership equity.’

Identify the source to raise finance available to an entrepreneur discussed in the above lines.

State any four features of the source of raising finance discussed in (i) above.