Raising an Inside Round

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Most startup fundraisers seek capital from outside investors who are new to the round.

This brings new investors into the cap table.

There are rounds in which the existing investors fund the startup.

This is often done for bridge rounds.

Instead of raising the next major round, the startup raises additional capital to prepare for the next major round.

This often happens between the seed and Series A, which is a bigger step compared to other rounds.

An inside round often occurs around an important milestone, such as reaching cash flow positive or achieving a specific metric.

They are often smaller fundraisers in terms of amount.

They focus on existing investors.

The goal is often a key metric needed to raise the next round.

They are often priced at the same valuation as the last one.

It’s easier to raise a small amount from the existing investors than from outside investors.

Inside rounds are common and don’t necessarily indicate the startup is in trouble.

Consider an inside round for your startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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