The importance of capital

Producing high-growth companies looking to target global markets in short timeframes requires large volumes of capital. It also necessitates a certain type of capital - typically with a very high tolerance for risk. Abundant venture capital of this sort is critical to the success of startup ecosystems as it helps build scale quickly across the system.

Early stage or ‘seed’ capital, which often comes from individual ‘angels’ rather than larger venture capital funds, is at the riskiest end of this spectrum. ‘Growth’ capital tends to come as businesses mature, and is often referred to as ‘Series A’ (the first round of growth capital), ‘Series B’ (second round) and so on. Growth rounds tend to increase in size as the company ages and are designed to enable businesses to expand more rapidly than profits would otherwise allow.

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