Alphabet Rounds

Alphabet Rounds
The early rounds of funding for a startup company, which get their name because the first is known as Series A financing, followed by Series B financing, and so on. Alphabet rounds of financing are provided by early investors and venture capital (VC) firms, which are willing to invest in companies with limited operational histories on the hope of larger future gains. These investors will typically wait until the startup has shown some basic signs of maturity and has exhausted its initial seed capital.

When a company is seeking venture capital funding, it will still have little or no revenue/cash flow, but will generally have an established business model and a clear path to a designated market segment. Venture capital firms are looking to invest with a time horizon in the five- to seven-year range, at which point they can hopefully cash out to a private equity firm or through an initial public offering of stock.

Depending on the needs of the company, a Series A round of financing may be enough to propel the company to the point at which it can stand on its own operating cash flow. If a VC firm is participating in a later round of financing - a Series C financing, for example - its potential equity stake in the company will already be diluted, and it will need strong conviction that the company will earn a solid return before committing any funds to the startup.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • boxing — boxing1 /bok sing/, n. 1. the material used to make boxes or casings. 2. a boxlike enclosure; casing. 3. an act or instance of putting into or furnishing with a box. [1510 20; BOX1 + ING1] boxing2 /bok sing/, n. the act, technique, or profession… …   Universalium

  • Quizbowl — (also known as Quiz Bowl, Scholastic Bowl, Brain Bowl, Academic Team, Academic Varsity Bowl, Academic Challenge, Academic Challenge Bowl, Scholar Quiz Bowl, Academic Quiz Team, Academic League, Academic Bowl, It s Academic, Battle of the Brains,… …   Wikipedia

  • Supermarket Sweep — For more information on the British version of Supermarket Sweep, see Dale s Supermarket Sweep .Infobox Television show name = Supermarket Sweep genre = Game show creator = Al Howard director = Lloyd Gross (1965 1967) Peter Molnár (1965 1967)… …   Wikipedia

  • Hungarian language — Hungarian magyar Pronunciation [ˈmɒɟɒr] Spoken in …   Wikipedia

  • Azerbaijan — /ah zeuhr buy jahn , az euhr buy jan /; Russ. /u zyirdd buy jahn /, n. 1. Also, Azerbaidzhan. Formerly, Azerbaijan Soviet Socialist Republic. a republic in Transcaucasia, N of Iran and W of the Caspian Sea. 7,735,918; 33,430 sq. mi. (86,600 sq.… …   Universalium

  • The Joker's Wild — infobox television show name = The Joker s Wild caption = Show logo, 1972 1975 format = Game show rating = TV G runtime = 30 minutes with commercials creator = Jack Barry starring = Jack Barry (host, 1972 84) Bill Cullen (host, 1984 86) Jim Peck… …   Wikipedia

  • List of Ultimate Muscle characters — The following is a list of characters who appear in Yudetamago s manga and anime series Ultimate Muscle/Kinnikuman Nisei. Contents 1 Prologue of a Legend Hercules Factory Arc 2 Legends (Original Muscle League) 3 dMp Arc …   Wikipedia

  • Dave Morice — Birth name David Jennings Patrick Morice Born September 10, 1946 St. Louis, MO Dave Morice (born September 10, 1946) is a …   Wikipedia

  • QI — For other uses, see Qi (disambiguation). QI The QI logo Also known as Quite Interesting QI XL (extended repeats) QI VG (compilation episodes) Genre Comedy …   Wikipedia

  • Handloading — or reloading is the process of loading firearm cartridges or shotgun shells by assembling the individual components (case/shotshell, primer, powder, and bullet/shot), rather than purchasing completely assembled, factory loaded cartridges.… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”