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glossary of funding types
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Seed: Can range between $10K-$2M, though larger seed rounds have become more common in the last ten year. Seed rounds are one of the first rounds of funding. They typically come after Angel rounds (if applicable), but before any of the Series rounds.
Angel: Angel rounds are the first round a company may go through. Angel investors, friends, and/or family may invest in an angel round to get a new company off the ground.
Venture: A Venture round encompasses our Series A, B, C, D, E, F, G, H rounds. You can select a more specific Series by selecting the ‘Venture’ Round.
Series A-B are rounds for earlier stage companies and can range anywhere from $1M-$20M.
Series C rounds and onwards are rounds for later stage and more established companies and can range anywhere from $10M+.
Equity Crowdfunding: Some funding platforms will allow their user base to invest in companies in exchange for equity. Companies allow investors to invest typically small amounts of money in exchange for equity. 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: A product crowdfunding round is where a company will provide its product in exchange to raise 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 typically and is a late stage round. It is a less risky investment and the rounds are typically upwards of $40M+.
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. You will typically see convertible notes after a company raises a Series A but does not yet want to raise a Series B.
Debt Financing: Debt financing rounds are where firms will lend money to a company. In exchange, a company will promise to repay the principal as well as added interest on the debt.
Secondary market: Secondary market rounds are when an stocks are sold in a company from a shareholder rather than purchasing stock directly from the company. This can happen before a company goes public, and is infrequently announced or publicized.
Grant: A grant is when a company, investor or government agency will give capital in a company and does not take equity in a company.
Post-IPO Equity: Post-IPO Equity round takes place when firms invest in a company after they have already gone public.
Post-IPO Debt: Post-IPO Debt round takes place when firms loan a company money after they have already gone public. Similar to debt financing, a company will promise to repay the principal as well as added interest on the debt.
Round: A round is a general term for a funding round used when no other funding type seems appropriate.
Non-Equity Assistance: A non-equity assistance round is when a company or investor provides office space or mentorship and does not get equity in return.