Funding rounds (seed to Series C)

What is funding rounds (seed to series c)?

Funding rounds are the sequential stages a company raises equity through as it grows, typically pre-seed, seed, then Series A, B, and C. Each round sells equity (usually preferred stock) to investors, ideally at a higher valuation than the last, in exchange for the capital to hit the next set of milestones.

Why it matters for fast-growing companies

Each round carries an implied bar: seed proves early traction, Series A proves repeatable product-market fit, and Series B and C fund scaling what already works. Raising before you've hit the milestone the next round expects leads to down rounds or dead ends. Know what story each round is supposed to tell before you start pitching.

Related terms

• Fundraising & equityPre-money vs post-money valuationPre-money is a startup's valuation before new investment; post-money is that value plus the new cash raised.
• Fundraising & equityTerm sheetA term sheet is a short, mostly non-binding document that lays out the key terms of a proposed investment, valuation, amount raised, liquidation preference, board seats, and investor protections, before lawyers draft the final deal.
• Fundraising & equityAngel investorAn angel investor is an individual who puts their own money into early-stage companies, usually at pre-seed or seed, in exchange for equity or a convertible instrument like a SAFE.
• Fundraising & equityDilutionDilution is the reduction in your ownership percentage when a company issues new shares, typically in a funding round or when expanding the option pool.

Frequently asked questions