Late-stage startups, also called Series C, are companies that have been successfully in business for a few years or more. Companies at this level are already on their way to profitability, their market has taken notice of them, and they just need an extra round or two of funding to keep scaling up quickly. These companies tend to have a fairly stable business model which helps them attract the funding they need.
For companies like these, conventional entrepreneurial advice says to find a lead investor as soon as possible during the startup phase of a company. This key leader, and largest capital investor, is critical to give the startup validation and to attract further investment. In fact, many lower-level investors will not consider seeding a startup until the startup has a significant lead investor backing it. However, having a lead investor is not a requirement for funding. And a growing number of late-stage startups are taking advantage of this freedom to run their startup their own way.
Source: Escalon Services
