Securities offering

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A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a capital project, an acquisition, or some other Export business purpose.

Types of rounds

Rounds are often described according to the nature of investors, the size of investment, and the stage of the enterprise.

  • Seed rounds (also called "friends and family" rounds) are used to launch an enterprise
  • Angel rounds are early investments by angel investors.
  • Venture rounds are large ($1M-$30M) investments led by venture capital firms. These are often denoted by the series of stock sold, e.g. "A round," "B round" and so on. The name of the round suggests the stage in the company's growth. A company that reaches a "D" or "E" round without achieving some success raises concerns; a company that has been through a major restructuring may renumber its series, e.g. an "AA round" or an "A' round." Informally, these rounds might be termed a "first round,"second round," and so on.
  • A mezzanine round is late stage private funding, meant to carry a company over until a public offering or major merger or acquisition



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