What Are Early Stage Companies?
? Lateral Capital’s definition of Early Stage Companies (ESCs) is neither precise nor “official.” We see an increasing number of groups using the term, and we’re not sure they know what they mean either!
We define ESCs as companies which fit to a particular space in the evolution path of companies with significant long-term potential. It is not a specific company age, investment stage (like Series A, etc.) or business status, like pre-revenue, Beta customer or pre-clinical. Rather, ESCs can be thought of as “late Angel to early Venture Capital.”
What we don’t do is “Angel investor,” at least not in the original sense of the words. The concept of Angel investor began on Broadway, where angels was meant to imply that to get your Broadway show off the ground, it had to come from the heavens with little expectations of a return. This is definitely not Lateral Capital. We expect a financial return and we clearly didn’t come from the heavens!