2.1. Preliminary Focus on the Different Clusters of Investment

Different clusters of equity investment define the activity of the investor. There are two approaches implemented by investors explaining the relationship between investment and activity: traditional and firm-based (or modern approach). The traditional approach is based on the relationship between the firm’s development and its financial needs. The firm-based approach, on the other hand, is a relatively new method of analysis. It evolved because of competition and great difficulty matching a firm’s needs with the activities of the private equity investor.

According to the traditional approach, the stages of equity investment are

  • Seed financing (development)
  • Start-up financing ...

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