follow-on-investment-round

Vocabulary Word

Definition

A 'follow-on investment round' is when a company gets more money from investors after an initial funding round. It's like running a second or third charity event to raise more funds.

Examples in Different Contexts

In start-up financing, a 'follow-on investment round' is when existing investors choose to invest additional funds in a start-up based on its performance and growth potential. A venture capitalist might state, 'We're committing to a follow-on investment round to support the start-up's expansion into new markets.'

Practice Scenarios

Tech

Scenario:

We have made significant progress developing our software with the initial capital. However, to meet our ambitious goals, we need to augment our resources further.

Response:

Agreed, a follow-on investment round would definitely enable us to extend our resources and reach our goals sooner.

Startup

Scenario:

The first investment round enabled us to launch our platform and start acquiring users. However, to expedite growth and improve our market standing, additional funding is required.

Response:

Exactly, with a successful follow-on investment round, we could accelerate growth and fortify our market leadership.