Funding Round

A Funding Round is a structured process through which a business raises capital from external investors to finance its growth, operations, or product development. These rounds typically correspond with distinct business milestones and are labeled sequentially as Pre-Seed, Seed, Series A, Series B, Series C, and so forth.

Each funding round involves:

• Setting a valuation

• Negotiating terms (equity dilution, preferred rights, liquidation preferences)

• Allocating new shares or convertible notes

• Disclosing financial forecasts and business performance metrics

The amount raised, valuation, and investor profile (angel investors, venture capital firms, strategic investors) evolve with each round, reflecting business maturity, market traction, and risk appetite.

In markets like the UAE, funding rounds have gained momentum, with local startups raising AED-denominated and USD-denominated rounds from regional and international VCs alike.