Explain how private equity approaches change as a company moves from start-up to maturity and decline

Seed and start-up firms have an idea, a team and little or no revenue. Angels and seed or early-stage venture capital fund them with equity or equity-like financing, and many fail. Expansion-stage firms have proven products and growing revenue and attract later-stage venture or growth equity, usually as minority stakes with little debt. Mature firms with steady cash flows suit buyouts, where the sponsor takes control and uses substantial leverage. Firms in decline or distress attract turnaround and distressed investors who can restructure the balance sheet. Match the strategy to cash-flow certainty: debt needs stable cash flow, while early-stage returns rest on a few large winners. The trap is applying buyout-style leverage to a company that is still burning cash.