Round defined: A “Round” (also known as a “Funding Round” or “VC Round”) is an investment made in a private company by one or more investors using a particular set of terms, usually but not always closing on the same date. There can be one or multiple participants in a round, and all generally have the exact same price and other terms (for example a private company’s “B Round” might be its second venture capital round involving 3 VC firms for a total of $9 million with each firm contributing a piece of the round; the company’s “Series B” stock issued to all 3 VC firms will all have the same price, and terms and conditions such as liquidation preferences (see definition), whether the stock is participating preferred (see definition), receives dividends etc. The round’s investors may also be represented as a group with a seat on the private company’s board (see definition of “board seats demanded”).

Above is a definition for “Round” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

Click here to download the entire PrivCo Knowledge Bank as a Free PDF

Get access to the private company intelligence you need

Augment your research. Uncover opportunities. Close deals.