While venture capital firms prefer to invest in companies that are in their initial start-up modes, venture capitalists will also invest in companies at various stages of company's business life-cycle .The investments made by venture capitalists may be categorized by the stage at which the financing

Seed finance - generally, a small amount of capital ( seed capital) provided to the entrepreneur to prove his idea. This may support product development or idea development .

Start up financing - when venture capitalists provide  venture funds to companies for product development. This kind of venture financing is provided to start up companies been in business just a short time but have not yet sold offered their product in the market.

First stage finance - when venture capitalist offers funds to companies which exhausted their initial capital and need funds to commence commercial manufacturing and sales.

Expansion financing venture funding - This venture finance includes working capital for the initial expansion, funds for either a major expansion or the development of an improved product etc

Management / leveraged buyout venture financing - This includes venture capital to enable management to acquire business from either a public or private company or a product line.

Turnaround finance - provides venture capital or financing to a company at a time of financial difficulty or problems, for the purpose of turning the company around or helping its performance.