Question

After a while, Ahmad came up with an idea, “Now that we are established in Cairo, why don’t we seek one last fund and expand our business to Alexandria.”

QUESTION 9) If they manage to apply Ahmad’s idea and receive an additional fund to expand to Alexandria, what stage would this fund be? Explain why.

Answer 1

They are at expansion stage of venture capital financing.

The expansion stage is when the corporate is seeing tremendous growth and wishes extra funding to stay up with the stress. This is probable as long as the corporate is making healthy profits and revenue. As the company wants to expand and indicates that the business is a commercially viable product and is beginning to see some advantage, venture capital funding within the expansion stage is typically to expand the business even further into market development and commodity diversification.

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