Here’s How You Can Use It
Looking for companies in their growth phase? Target those that have secured Series A funding between $5 million and $20 million in the last 12 months. These companies are primed for expansion and seeking solutions to scale—think cloud infrastructure or business management tools that can handle rapid growth.
Funding Types
Funding Stages: A Closer Look
Angel Round
Explanation: Early-stage funding from individual investors, usually to help startups in their seed or pre-seed stages.
Example: A startup receives $500k from an angel investor to build a prototype and bring the product to market.
Convertible Note
Explanation: A form of short-term debt that converts into equity, typically during a future funding round.
Example: A company raises $1 million through a convertible note, which later converts to equity when the company secures Series A funding.
Corporate Round
Explanation: Funding from a corporation to invest in a company or startup, often strategic to both companies.
Example: A large tech company invests $10 million in a smaller AI startup, hoping to integrate the startup’s technology into their own product lines.
Debt Financing
Explanation: Borrowing funds with the agreement to pay them back with interest.
Example: A company raises $5 million in debt financing to expand operations, promising to repay the loan over 5 years.
Equity Crowdfunding
Explanation: Raising small amounts of money from a large number of people, often through online platforms, in exchange for equity.
Example: A startup raises $2 million through an online equity crowdfunding campaign, offering shares to individual investors who contribute.
Funding Round
Explanation: A generic term for any round of funding a company receives.
Example: A company closes a $7 million funding round to scale production.
Grant
Explanation: Non-repayable funding typically provided by government agencies or non-profits.
Example: A renewable energy company receives a $1 million grant from a government body to develop sustainable energy solutions.
Initial Coin Offering
Explanation: A type of funding in which a company offers cryptocurrency tokens in exchange for capital.
Example: A blockchain startup raises $10 million by offering tokens to early investors during an ICO.
Non-Equity Assistance
Explanation: Support given to companies in the form of grants, resources, or mentorship without giving away equity.
Example: A startup receives mentorship and office space valued at $100k from a business accelerator, without giving up any shares in return.
Post-IPO Debt
Explanation: Debt issued after a company has gone public to raise additional capital.
Example: A public company issues $200 million in debt financing post-IPO to fund expansion.
Post-IPO Equity
Explanation: Issuance of additional shares after a company has gone public, raising new capital.
Example: A public company raises $500 million through a post-IPO equity round to fund new acquisitions.
Post-IPO Secondary
Explanation: Sale of existing shares post-IPO, usually to allow early investors to exit.
Example: An early investor sells $50 million worth of shares in a post-IPO secondary sale.
Pre-Seed Round
Explanation: The first capital raised by a company, often from founders, friends, or family.
Example: A startup raises $200k in a pre-seed round from friends and family to develop a prototype.
Private Equity Round
Explanation: Funding from private equity firms to acquire a stake in a company, often used for larger companies.
Example: A private equity firm invests $100 million in a mature business to help restructure its operations.
Product Crowdfunding
Explanation: Funding raised for a product or project, often through platforms like Kickstarter, where contributors receive the product.
Example: A tech startup raises $500k through a product crowdfunding campaign to fund the production of a new smartwatch, promising contributors a unit of the product in return.
Secondary Market
Explanation: The sale of existing shares between investors, not involving the issuing company.
Example: An investor sells shares of a startup valued at $2 million in the secondary market to another investor, without the company being directly involved.
Seed Round
Explanation: Early-stage funding used to support the initial development of the company and its product.
Example: A tech startup raises $1.5 million in a seed round to hire its first employees and build out its initial product.
Series A
Explanation: The first significant round of venture capital funding, often used to scale the product and acquire customers.
Example: A startup raises $10 million in Series A funding to grow its marketing and sales teams.
Series B
Explanation: Used to expand business operations, typically after a company has proven its product-market fit.
Example: A company secures $25 million in Series B funding to expand its operations into international markets.
Series C
Explanation: Used for significant scaling efforts or acquisitions, often for companies with proven revenue.
Example: A rapidly growing company raises $50 million in Series C funding to acquire a competitor and increase market share.
Series D
Explanation: Often used for more mature companies seeking to continue scaling or deal with unforeseen challenges.
Example: A company raises $75 million in Series D funding to cover operational costs while planning an IPO.
Series E
Explanation: Funding for companies that are already successful but need additional capital to achieve specific goals.
Example: A company raises $100 million in Series E funding to launch a new product line and enter new markets.
Series F
Explanation: A later stage of funding for well-established companies seeking additional capital.
Example: A company raises $150 million in Series F funding to further its global expansion strategy.
Series G
Explanation: For companies that need even more capital to scale further or take on significant new projects.
Example: A company raises $200 million in Series G funding to continue developing its product and expand its global presence.
Series H
Explanation: Funding at a very late stage, for companies close to an IPO or other exit strategy.
Example: A company raises $250 million in Series H funding to prepare for its public offering.
Series I
Explanation: Further expansion funding for companies nearing maturity or an IPO.
Example: A company secures $300 million in Series I funding to make final preparations for an IPO and secure a dominant market position.
Series J
Explanation: Ultra-late-stage funding for companies nearing an IPO, acquisition, or other large-scale exit.
Example: A company secures $400 million in Series J funding to finalize its market consolidation strategy before its public offering.
Venture Round
Explanation: Generic term for a round of venture capital funding, often used for growth-stage companies.
Example: A startup raises $20 million in a venture round to scale its operations and product offerings.
