1, Angel Wheel: Usually, the company has just started, has no clear business model, and needs funds for product research and development and marketing. Investors are often individuals or angel funds. In the early stage of market positioning and business model, the valuation is low, and the investment amount is generally between several hundred thousand yuan and several million yuan. Advantages are relatively simple financing, quick arrival of funds and reduced risk. At the same time, angel investors can provide rich experience and resources. The disadvantage is that investors are less involved and have greater risks.
2. Round A: The company has a certain scale, clear market positioning and a certain profit model, and started to enter the market competition. Investors are usually venture capital funds, and the financing amount is generally around 10 million yuan. The advantage is that financing can be used in marketing, capital expansion and other fields to help the company expand its business scale. The disadvantage is that investors participate more, the company needs to take more precautions and constraints, and at the same time, it needs to allocate shares to investors.
3. Round B: The company already has expanding capital demand, and needs to invest to further expand the company scale and accelerate the increase of market share. The financing amount is generally more than tens of millions of yuan. The advantage is that the investment amount is large, which helps the company to expand its scale and increase its market share. The disadvantage is that investors' rights and interests increase, and corporate governance also needs higher requirements.
4. Round C: The company has a certain brand awareness and market position, and needs more investment to expand its scale. The amount of financing is generally tens of millions of yuan or even higher. The advantage is that sufficient funds will help the company to achieve greater success in the market. The disadvantage is that corporate governance and equity distribution are more complicated.