A funding round is when a company raises money from investors during a specific period, with all investors generally participating under the same or similar terms. Funding rounds are often labeled by stage — starting with a seed round, followed by Series A, Series B, and so on. As a company progresses, its valuation typically grows with each round, and the price per share usually increases as well.

Companies often rely on different Securities Act exemptions to structure these funding rounds. However, it’s important to determine whether each round is truly separate or whether they should be viewed as a single offering — a concept known as integration. If you’re exploring what is a funding round, understanding how rounds work and the regulatory considerations behind them is key to navigating startup financing.

Building Blocks: Offering Types, Building Blocks: Types of Investors, Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets: A Small Entity Compliance Guide, Building Blocks: I’ve raised early-stage capital. What next?