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Angel: An angel round is typically a small round designed to get a new company off the ground. Investors in an angel round include individual angel investors, angel investor groups, friends, and family.
Pre-Seed: A Pre-Seed round is a pre-institutional seed round that either has no institutional investors or is a very low amount, often below $150k.
Seed: Seed rounds are among the first rounds of funding a company will receive, generally while the company is young and working to gain traction. Round sizes range between $10k–$2M, though larger seed rounds have become more common in recent years. A seed round typically comes after an angel round (if applicable) and before a company’s Series A round.
Venture - Series Unknown: Venture funding refers to an investment that comes from a venture capital firm and describes Series A, Series B, and later rounds. This funding type is used for any funding round that is clearly a venture round but where the series has not been specified.
Series A and Series B rounds are funding rounds for earlier stage companies and range on average between $1M–$30M.
Series C rounds and onwards are for later stage and more established companies. These rounds are usually $10M+ and are often much larger.
Equity Crowdfunding: Equity crowdfunding platforms allow individual users to invest in companies in exchange for equity. Typically on these platforms the investors invest small amounts of money, though syndicates are formed to allow an individual to take a lead on evaluating an investment and pooling funding from a group of individual investors.
Product Crowdfunding: In a product crowdfunding round, a company will provide its product, which is often still in development, in exchange for capital. This kind of round is also typically completed on a funding platform.
Private Equity: A private equity round is led by a private equity firm or a hedge fund and is a late stage round. It is a less risky investment because the company is more firmly established, and the rounds are typically upwards of $50M.
Convertible Note: A convertible note is an ‘in-between’ round funding to help companies hold over until they want to raise their next round of funding. When they raise the next round, this note ‘converts’ with a discount at the price of the new round. You will typically see convertible notes after a company raises, for example, a Series A round but does not yet want to raise a Series B round.
Debt Financing: In a debt round, an investor lends money to a company, and the company promises to repay the debt with added interest.
Secondary Market: A secondary market transaction is a fundraising event in which one investor purchases shares of stock in a company from other, existing shareholders rather than from the company directly. These transactions often occur when a private company becomes highly valuable and early stage investors or employees want to earn a profit on their investment, and these transactions are rarely announced or publicized.
Grant: A grant is when a company, investor, or government agency provides capital to a company without taking an equity stake in the company.
Corporate Round: A corporate round occurs when a company, rather than a venture capital firm, makes an investment in another company. These are often, though not necessarily, done for the purpose of forming a strategic partnership.
Initial coin offering (ICO): An initial coin offering (ICO) is a means of raising money via crowdfunding using cryptocurrency as capital. A company raising money through an ICO holds a fundraising campaign, and during this campaign, backers will purchase a percentage of a new cryptocurrency (called a “token” or “coin”), often using another cryptocurrency like bitcoin to make the purchase, in the hopes that the new cryptocurrency grows in value.
Post-IPO Equity: A post-IPO equity round takes place when firms invest in a company after the company has already gone public.
Post-IPO Debt: A post-IPO debt round takes place when firms loan a company money after the company has already gone public. Similar to debt financing, a company will promise to repay the principal as well as added interest on the debt.
Post-IPO Secondary: A post-IPO secondary round takes place when an investor purchases shares of stock in a company from other, existing shareholders rather than from the company directly, and it occurs after the company has already gone public.
Non-Equity Assistance: A non-equity assistance round occurs when a company or investor provides office space or mentorship and does not get equity in return.
Funding Round: “Funding round” is the general term used for a round when information regarding a more specific designation of the funding type is unavailable.
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