A common problem for people today is when is the right time to invest. There are two main phases in investing, the early phase and the late phase. Both have their pros and cons in terms of risk and reward. This recurring problem has been going on for decades since investments became an important part of income. While investing in a company in its early stages can have consequences, the reward is far greater than investing in the later stages of a company. The first forms of investing date back to the early 1600s. It is far from similar to modern ways of investing, but it forms the basis for investing today. “Early investment institutions such as acceptance houses and investment banks helped finance foreign trade and accumulate funds for long-term investment abroad” (Accuplan). This was very common for people back then because people always try to find ways to expand their business in life. According to Accuplan, the New York Stock Exchange was born in 1792. Because it has been so successful, it is home to most of the world's largest and best-known companies. Some of the most successful businessmen such as JP Morgan were among the first in the United States to become billionaires through the use of investments. One form of investment is Venture Capital, considered the initial phase of investment. According to investopedia, venture capital is a source of financing for new businesses. It finances the investor pool and lends it to start-ups and small businesses with perceived long-term growth potential. This is very important for companies to start their life and help them expand. In exchange for the money offered to the company, they hope to receive their initial contribution... in the middle of the paper... and that other companies cannot directly compete with it." Venture capital firms are willing to invest in a company if they believe the growth potential is double or higher in value through additional financial resources. By using this approach to accelerate growth, entrepreneurs can increase the value of their equity stake without significant incremental risk increasingly popular among the most popular companies today. According to Sarah Lacy, “Today, the best companies of the last decade have all raised late-stage funding, and prices are no longer a bargain.” Some of the best-known companies today like Twitter, Groupon and Zynga..Lacy says: “This chart shows dramatic returns. In the wake of the dot com bust, limited partners told me privately that Accel Partners was one of two large firms that would never raise money again..”