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VC Glossary

Written by: Sara Escamilla

The world of Venture Capital is often overwhelming at first sight, even more so when you do not have the primary knowledge. This guide will help you understand the basic context to start getting into this subject. In addition, there will be occasional videos that we believe will help you gain a greater understanding of the concepts listed.

Basic processes

First, for a company to raise capital, foundation rounds are necessary. The basic ones that need to be taken into account for these processes are the following.

Acquisition: When one company purchases most or all of another company’s shares to gain control of that company.
Funding round: Anytime a company raises money from one or more investors. They’re given a letter, such as A Round, B Round, C Round, etc. because each round follows another. The letter identifies which number of rounds they’re on.

  1. Early-Stage Funds: These funds are generally from $2 million to $15 million in size and invest in seed-stage and Series A companies but occasionally lead a Series B round. They are also referred to as Seed Rounds, as they help lay the foundation for a company.
  2. Mid-Stage Funds: These funds usually range from $30 million to $60 million. They generally invest in Series B and later rounds.
  3. Late-Stage Funds: Take place when the company is successful and self-lowered. It is typically done as the last financing before a prospective initial public offering (IPO), or taking part in Series C and the following.

Recommended videos to understand this better:

IPO: Process that offers shares of a private corporation to the public in a new stock issuance. With the objective of raising capital from public investors.

Pre-Seed Round: An early pre-institutional seed round that either has no institutional investors or is a very low amount, often below $150k.

Seed Round: The first Funding Round that a startup receives; it helps at the beginning for the development of the business idea. The Seed Capital is commonly obtained by Angels/Super Angels, as well as VCs.

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Credits: Sara Escamilla Enríquez, Luis Miguel Almanza Rueda, Itzel Pamela Becerril Tovar, Rodrigo Alejandro Ibarra Vizcarra, Gabriel García Nevárez, Ilian Murillo Palma, Marcos Abraham Rascón Corona, Priscila Elizabeth Terrazas Rico, Ivan Elias Castro Cordero.



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Elias Aguirre

Elias Aguirre

My name is Elías, I´m 19 years old. I´m a young visionary who loves to help others, play music, and impact everyone positively.