In the development period, because the enterprise is in the initial stage, it does not have enough advantages to attract the attention and favor of venture capitalists.
In the mature period, because the business scale of the enterprise has been formed, the growth of operating profit tends to be stable. At this stage, the financing demand of enterprises is not strong, even if financing, the required rate of return will be high. The chances of venture capitalists getting excess returns are reduced, and they will no longer make qualified time investments.
During the recession, because the enterprises begin to decline, it will not arouse the interest of venture capitalists.
In the growth period, because enterprises have revealed certain development potential and advantages through initial development, it is easy to attract venture capitalists. During this period, enterprises also need a lot of financial support because of their development, and the demand for funds far exceeds the requirements for the return on equity of enterprises. Venture capitalists can enter the enterprise at a relatively low price, and the two can easily hit it off.
Of course, there are special circumstances, such as so-called high technology or good ideas. If you can get the approval of venture capitalists, you can get their investment in the process of enterprise development.