early-stage investing

Early-stage investing involves providing funding to a startup or new business when it is in its initial development phases. At this stage, the company often has a viable idea or prototype but limited revenue and high growth potential. Investors support these ventures to help them refine products, expand operations, and reach profitability. Risks are higher due to uncertainty, but potential returns can be substantial if the company succeeds. Early-stage investing is common among angel investors and venture capitalists aiming to back innovative ideas early on, often with a longer-term horizon and active involvement in the company’s growth.