What Is Venture Capital? If you need additional data financial-equity.com Another key valuation metric is the dividend yield, which measures the annual dividend income per share relative to the stock's price. A higher dividend yield may attract income-oriented investors, while a lower yield might be more appealing to growth-focused investors. Furthermore, the ROE ratio, which measures a company's profitability in relation to its equity base, is an essential metric for evaluating the efficiency of management in creating shareholder value. In the early stages of a startup, obtaining financial support is a crucial step toward success. One of the initial funding stages is the pre-seed stage, which provides capital for entrepreneurs to develop their ideas and products. During this stage, startups typically seek funding from investors such as friends, family members, or angel investors. LinkedIn Link icon An image of a chain link. It symobilizes a website link url. The Bottom Line. By securing pre-seed funds, startups can thoroughly research their target market, refine their business idea, and validate their product's potential in the industry. With a solid foundation in place, pre-seed startups are better positioned to attract future investments.