The “Early-Late” stage startups: the emergence of a new investment stage

“初晚期”创业：新投资阶段的出现

Source from: Chemi Peres

Recently Chemi Peres wrote in his blog about the emergence of a new investment stage: “Early-Late” stage. He states that this stage refers to companies who, for all intents and purposes, should have been defined as young startups. They are usually in just their second or third year of operations, and in most cases, their management teams are incomplete.

However, when they present their company to potential investors in the hopes of obtaining a first round of institutional VC financing (a “Series A” round), it would appear as if they are instead seeking “Late” stage financing. 

This is mainly because their pre-money valuations are relatively high, and the amount of capital they are seeking to raise more closely resembles a late stage investment – in most cases, they contemplate raising $10M-$20M.

To read more reasons that caused the emergence of the new investment stage, please visit here.