Development Stage

December 10, 2013  |     |     |   0 Comment

Development stage is the early stage in a business in which it has no significant operations or revenues. In this stage, it may still be developing its product or seeking capital to grow the business.

Most development stage companies are privately-help with very few investors (usually an angel investor or more) and little capital. However, in some cases, a development stage company may be listed publicly to seek capital to grow the business. This is especially true of some Internet businesses that list as a shell company, otherwise known as a blank-check company, from which they seek to raise capital to build their business or acquire an operating business.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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