
Early-stage investment
Early-stage investment refers to funding provided to startups or young companies in their initial phases of development. Investors contribute capital to help these businesses grow, often in exchange for equity—ownership stakes in the company. This type of investment is crucial as it supports innovation and the development of new ideas, but it carries high risks since many early-stage businesses may fail. However, successful investments can yield significant returns if the company grows and thrives over time. In essence, it’s a bet on a business's potential to succeed and become profitable in the future.