Rounds of Investment

1. Pre-Seed Round
   • Description: The earliest stage of funding, often involving personal savings, family, friends, or angel investors.
   • Purpose: To develop a prototype, conduct initial market research, and create a business plan.
   • Investors: Founders, family, friends, angel investors.
2. Seed Round
   • Description: The first official equity funding stage.
   • Purpose: To complete product development, market testing, and early customer acquisition.
   • Investors: Angel investors, seed-stage venture capitalists, incubators, accelerators.
3. Series A Round
   • Description: The first significant round of venture capital funding.
   • Purpose: To scale the business, expand the team, and further develop the product.
   • Investors: Venture capital firms, institutional investors.
4. Series B Round
   • Description: The second round of venture capital funding.
   • Purpose: To expand market reach, grow the team, and increase revenue.
   • Investors: Venture capital firms, late-stage investors.
5. Series C Round
   • Description: The third round of venture capital funding.
   • Purpose: To scale operations, enter new markets, and possibly prepare for acquisition or IPO.
   • Investors: Venture capital firms, private equity firms, hedge funds.
6. Series D and Beyond
   • Description: Additional rounds of funding as needed.
   • Purpose: To continue scaling, invest in new projects, or bridge to an IPO.
   • Investors: Venture capital firms, private equity firms, hedge funds.
7. Mezzanine Financing
   • Description: A hybrid of debt and equity financing.
   • Purpose: To prepare for an IPO or acquisition, or to bridge the gap between later-stage rounds.
   • Investors: Private equity firms, hedge funds, investment banks.
8. IPO (Initial Public Offering)
   • Description: The process of offering shares of a private corporation to the public in a new stock issuance.
   • Purpose: To raise significant capital from public investors.
   • Investors: Institutional investors, retail investors.
9. Post-IPO (Follow-on Offerings)
   • Description: Additional equity issued by a company that is already public.
   • Purpose: To raise additional capital for expansion, debt repayment, or other corporate purposes.
   • Investors: Institutional investors, retail investors.

Special Rounds

1. Convertible Note/SAFE Round
   • Description: A type of short-term debt that converts into equity, typically in conjunction with a future financing round.
   • Purpose: To bridge funding gaps before a larger equity round.
   • Investors: Angel investors, venture capital firms.
2. Bridge Round
   • Description: Interim funding to bridge the gap between larger rounds of funding.
   • Purpose: To provide short-term liquidity to the company.
   • Investors: Current investors, venture capital firms, private equity firms.