In exchange for the high risk that venture capitalists assume by investing in smaller and early-stage companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the companies' ownership (and consequently value). In addition to angel investing, equity crowdfunding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. Venture capitalists provide this financing in the interest of generating a return through an eventual "exit" event, such as the company selling shares to the public for the first time in an initial public offering (IPO), or disposal of shares happening via a merger, via a sale to another entity such as a financial buyer in the private equity secondary market or via a sale to a trading company such as a competitor. The first round of institutional venture capital to fund growth is called the Series A round. The typical venture capital investment occurs after an initial " seed funding" round. Then, if the firm can survive through the " valley of death"–the period where the firm is trying to develop on a "shoestring" budget–the firm can seek venture capital financing. First, the new firm seeks out " seed capital" and funding from " angel investors" and accelerators. A financing diagram illustrating how start-up companies are typically financed.
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