Companies can raise funds in one or more separate tranches or “rounds.” The first equity investment round is often called a “friends and family round.” A round that includes wealthy individuals or angel investors may be called a “seed round.”

Investment rounds can also be identified by their “series.” The first larger round comprising angel investors or early-stage venture capital funds can be called a “Series A round.” Subsequent investment rounds will be referred to as a Series B round, Series C round, Series D round, etc.