"a" round financing, Financial Management

Assignment Help:

"A" Round Financing

"A" Round Financing is the first main round of business financing through private equity investors or venture capitalists. In private equity investing, an "A" round, or Series A financing, is generally in the form of convertible preferred stock. An "A" round by outside investors usually takes place after the founders have utilized their seed money to give a "proof of concept" representing that their business concept is a feasible - and ultimately profitable - one

When investing in companies, private equity investors characteristically favor convertible preferred stock to common stock for a variety of rounds of financing, like Series A, Series B etc., because of the particular features of the security. Convertible preferred stock have characteristics like dividend accrual and convertibility into common stock, which can become very profitable. As well, preferred stock will owns a higher degree of rights as compared to a common shareholder.

 

 

 


Related Discussions:- "a" round financing

Deterministic model, Deterministic Model After the macroeconomic, indus...

Deterministic Model After the macroeconomic, industrial and business analysis of the company chosen is done First of all a point estimate for all the input variables in a valua

Baumol, To what extent does empirical evidence on corporate objectives supp...

To what extent does empirical evidence on corporate objectives support the predictions of Baumol’s “Sales Maximisation Hypothesis?”

Revenue bonds, Revenue bonds are the securities issued for financing ...

Revenue bonds are the securities issued for financing an entity for general      public-purpose. The securities issued for entity financing are backed up with the

Mutual fund services, Mutual Fund Services: Financial Mutual Funds laun...

Mutual Fund Services: Financial Mutual Funds launch schemes to cater to the need of the different categories of investors. They provide special services in addition to the retu

Help ASAP, If firm A has a higher debt-to-equity ratio than firm B then tha...

If firm A has a higher debt-to-equity ratio than firm B then that means what

Define the services that international banks provide, Briefly discuss some ...

Briefly discuss some of the services that international banks provide their customers and the market place. Answer:  International banks can be categorized by the types of servic

Example on bills of exchange, Q. Example on Bills of exchange? ARG Co w...

Q. Example on Bills of exchange? ARG Co will be apprehensive to protect the sterling value of its expected dollar receipt. The quoted forward rates demonstrate that the dollar

Capital structure theory, Capital structure theory: Use the following ...

Capital structure theory: Use the following information to answer the questions: Case I: Capital structure theory ( no tax ) Case II: Capital struct

Objectives of averaging, The two main objectives are: ...

The two main objectives are: To get at a single value: Measures of central value, by considering the mass of data in one single

Operating and financial leverage, explain the significance of operating lev...

explain the significance of operating leverage and financial with the help of example?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd