(vc)How do you differentiating funding rounds?
Hi. Could you teach me the way or standards for differentiating funding rounds?
While I am reviewing the investments and potential deals, I have a hard time differentiating funding rounds. I know the concepts, but when I see the reports of the same company but from other vc’s, the same funding round has different series.
Nobody in my firm cares or knows why since it is a small local pe shop. I really hope you guys could share some thoughts and ideas. Thank you.
Be more specific
For example, we are investing $1mm to company A with other VCs(total $5mm). Pre-value of the company A is $15mm. The company A got series A investment already, so I thought this round would be series B.
Since 5 different VCs are investing, I got a chance to see 4 different reports about the company A. 2 VCs considered this funding round as series a, the others considered it as series b.
That doesn’t make any sense and is atypical. It’s possible that some thought the Series A was a seed round, but typically you just defer to whatever nomenclature the company uses
Got it. Thank you for the advice. I’ll just leave this apart from my report.
Makes no sense. The SSA should mention the class of shares being sold. In fact even the term sheet should mention that.
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