A capital raise, also known as a funding round, is when a company raises money from investors. The process of raising capital typically involves a company issuing shares of stock or other securities to investors in exchange for money or other assets. Companies may go through multiple funding rounds throughout their life, with each round allowing them to raise larger amounts of capital as they grow and prove their business model.

There are several different types of funding rounds:

• Seed round: The first round of funding for a company, usually from friends, family, and angel investors. The money raised in this round is typically used to develop a proof-of-concept and create a working prototype of the product.
• Series A round: This is the first round of venture capital financing, typically led by professional venture capital firms. The funds are used for product development and early-stage operations.
• Series B round: This round is typically led by growth-stage venture capital firms, and the funds are used for expansion, hiring, and growth.
• Series C round and beyond: These rounds are for more established companies with proven business models, and the funds are used for further expansion and growth, as well as acquisitions.
• Initial Public Offering (IPO): This is the process of a company selling shares of stock to the public for the first time, allowing them to raise large amounts of capital while also becoming publicly traded.

It’s worth noting that the naming of the rounds, and the stages of the company might slightly vary depending on the context but the basic idea is the same.

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