Round of Funding
A Round of Funding is a stage in which a company raises capital from external investors to support its growth, operations, or strategic initiatives. Each funding round is typically distinguished by:
The valuation of the company.
The type of securities offered.
The investor profile (angels, VCs, private equity, etc.).
The terms of investment (convertible notes, equity, SAFEs, etc.).
The typical funding stages include:
Pre-Seed and Seed: Initial capital from founders, friends, and early angels.
Series A, B, C…: Formal venture capital rounds for scaling, market entry, and expansion.
Mezzanine and Bridge Rounds: Transitional financing to bridge to an IPO, acquisition, or profitability.
Each round dilutes existing shareholders to varying degrees but provides necessary cash for scaling operations and hitting milestones.