Capital Deployment and Investment Cycles

The VC funds invest their capitals in various rounds of investment in a startup. Most start-ups fall under the stages outlined below:
● Seed Stage: It is the earliest stage where small amounts of capital are invested in the starting phase of a startup to fund the building of the product and do some market validation.
● Series A: Same round of funding achieved by start-ups that are showing early stages of success and maturity as they look to scale.
● Series B, C and Beyond: Follow-on rounds to further scale the business, build out infrastructure, or expand into new markets.
Typically VC funds would have a pool of ready money for follow-on investments; hence continued investing in its portfolio companies through multiple rounds as the startup matured and grew.