The period during which the cost of funds is comparable throughout the period, whether in terms of equity dilution or rate of borrowing interest. Reaching the next fundraising stage requires progression to the next stage of business development and/or attainment of the necessary financial objectives. This permits solicitation of additional capital at more favorable terms vis-à-vis a higher valuation or a lower interest rate. A financial plan is required to determine the “necessary ” amount of funds and to identify the sources of funding currently offering the lowest costs of capital in each fundraising stage.
