Definition, Meaning & Synonyms

first-round-financing

noun

/ˈfɜrst ˈraʊnd ˈfaɪnænˌsɪŋ/

Definition

The initial phase of funding provided to a startup or company to help it develop its product, market, or business model.

Examples

After successful pitches, the startup secured first-round financing to get their innovative app off the ground.
The entrepreneur was excited to receive first-round financing that would allow her team to expand their research.
Investors are often eager to participate in first-round financing to get in early on promising businesses.

Meaning

First-round financing typically refers to the early stage of investment that supports a new venture in its early development. This funding is crucial for startups to establish themselves and can come from venture capitalists, angel investors, or crowdfunding.