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What does it mean to finance different stages: Angel, Seed, 1st round, 2nd round, later stage?
This refers to the various stages of a company lifecycle.
The first would be founder, friends and family. This is you at the idea stage. You put in $10K, and you get some close family and friends to put in a few thousand dollars (or more, depending on how much money they have and how much they like you :) to get the business started.
Angel and Seed usually go together. They are the First outside investors that put money into your company - usually $50,000 to $1,000,000 (depending on the company) They are usually rich individuals who have some knowledge of the industry and like to take a gamble for the potential upside.
First Round is just after that. This is typically a company that has more structure, a product, a basic management team, you could have some revenue/sales, but you are not a $10M corporation. It's Early-Stage. Typical investments range from $1-$5M.
Second stage is after that. The company has a lot of traction, strong sales, a solid team, and they are looking to heavily expand nationwide or internationally, and are on track to pull in several million dollars in revenue. They an raise anywhere from $7-20M in VC capital.
Later Stage is after that (or at the same time) This is often grouped with the LBO (leveraged buy out) category. This would be for raising a large amount of money to Buy another corporation, position yourself to be purchased, or to go public.
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