What is a funding round?
A funding round is the process where a company raises new capital by issuing shares to investors. Each round typically has a name that indicates the company's maturity stage.
Types of rounds
- Pre-seed / Seed — Early capital injection for product development and market validation
- Series A — First major round, often to scale the business
- Series B-C+ — Growth capital for expansion, internationalization, or new markets
- Pre-IPO — Final round before a planned IPO
What does it mean for the share price?
Each funding round sets a new valuation. If the company is growing, the valuation should increase between rounds — but there are no guarantees. The round also defines the "post-money valuation" often used as a reference.