At the concept stage of company development (stage 1), you have an idea and are exploring the feasibility of building a technology product or service based on that idea. You’re working to determine how you will build the product or deliver the service, and to identify the target customers, partners, distributors and competitors in your market.
The risk at this point of a venture is generally considered high. While investment capital requirements are relatively modest (< $250,000), the business usually has no revenue.
The funding received in the concept stage will be used to:
Learn more about the other stages of company development:
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Canada’s Venture Capital & Private Equity Association. Retrieved April 19, 2009, from www.cvca.ca.
National Venture Capital Association. Retrieved April 19, 2009, from www.nvca.org/def.html.
National Angel Organization. Retrieved April 19, 2009, from www.angelinvestor.ca.