Startup Funding Rounds: How It Really Works

Let me demystify this complex, confusing strategy they call:

Startup Funding Rounds.

Yeah, you’ve heard the words thrown around before.

“We’re raising our series B”, and “I’m looking for a pre-seed angel investor or “We’re gearing up for an IPO”…

They may as well be talking another language, right?

Except that somewhere between those phrases, letters and acronyms is a reliable, rock-solid funding strategy that is PROVEN to work again and again.

It has turned founders into billionaires…

Put CEOs on the cover of Entrepreneur magazine…

And transformed back-of-napkin ideas into living breathing companies.

So let’s cut to the bone and spell out the sequential funding rounds in PLAIN ENGLISH.


  • What each funding round means
  • How much money you can expect from each round
  • Who provides that money
  • How to tell which round a business needs next
  • Who leads a company through each round
  • Why the rounds even exist in the first place!

Exclusive Download: Fundraising Like a Pro — Learn the 3 phases of fundraising and a 7 week process for starting & closing your next round of funding

If there’s a part of you that feels intimidated because you don’t yet understand all the “CEO talk” (yes, I’m using air quotes here), then don’t worry.

I didn’t either.

Now I could write a dictionary on “corporate jargon” 3-houses-thick and I would never even recommend anyone reads it.

But in those early days, I was beating down doors to find someone — anyone — that could spell out the basics when I was trying to start my first business.

By the end of this video, startup funding rounds will finally make sense.

Drop me a comment if you’re still not sure about anything.

I’d love to hear from you.

P.S. Prefer audio? Subscribe to the Growth Stacking Show directly on Apple Podcasts or Spotify and make sure to leave a rating and review if you find the show helpful.

Dan Martell has advised more startups than his hometown has people and teaches startup founders like you how to scale. (Get access to all my latest business hacks.) He previously created, raised venture funding for and successfully exited three tech companies: Spheric, Flowtown and You should follow him on Twitter @danmartell for tweets that are actually awesome.

Originally published at on January 4, 2021.




I coach ambitious software founders | Award-winning angel investor / 5x founder with 3x exits | Speaker | Proud Father.

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Dan Martell

Dan Martell

I coach ambitious software founders | Award-winning angel investor / 5x founder with 3x exits | Speaker | Proud Father.

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