Later stage

Definition:

In context of private equity, the state of a company that has proven its concept, achieved significant revenues compared to its competition and is approaching cash flow break even or positive net income. A later stage company is usually about 6 to 12 months away from a liquidity event such as an IPO or buyout.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Double-dip lease

A cross-border lease in which the different rules of the lessor's and lessee's countries let both parties be treated as the owner of the leased equipment for tax purposes.

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