A financing round, also known as a funding round or investment round, refers to a specific stage in a company's funding journey when it seeks to raise capital from investors in exchange for equity ownership or other forms of financial instruments. Financing rounds are a critical part of the startup and business growth process and are commonly associated with startups and early-stage companies, although established companies may also conduct financing rounds to secure additional capital for expansion or strategic initiatives.
Each financing round typically involves the issuance of new shares of the company's stock or other financial instruments, such as convertible notes, SAFEs (Simple Agreements for Future Equity), or preferred shares, to attract investors and raise funds. The price at which these financial instruments are sold to investors is known as the "valuation" of the company at that specific round.
Financing rounds are often named according to the stage of the company's development and the level of capital required. Some common types of financing rounds include:
The objective of each financing round is to raise capital to fund the company's growth, research, product development, marketing, and other strategic initiatives. As a company progresses through various financing rounds, the goal is often to increase its valuation, attracting new investors while rewarding early backers.
Related TermsSimple Agreement for Future Equity (SAFE)
SeedBlink S.A. is registered in the Register of the Romanian Financial Supervisory Authority (ASF), under number PJR28FSFPR/400001, as of 03.11.2022 with an EU passport as per European Securities and Market Authority (ESMA) register of crowdfunding services providers.