The innovative company lifecycle

Figure 3 presents the innovative company lifecycle and its challenges. In the pre-seed stage, an entrepreneur based in a local innovation ecosystem develops an idea with the financial support of friends and family. This idea transforms into a ‘proof of concept’ that can attract more funding from incubators, angel investors and venture capital. In the early stage, the company (now a start-up) starts to commercialise a product. It continues to build its supply chain and set up subsidiaries in other regions with the support of financing from venture capital, banks, and financial institutions. Finally, the company can exit through a merger or acquisition, initial public offering (IPO) on a stock exchange.