pääomakierros

Pääomakierros, which translates to "capital round" in English, refers to a stage in a company's funding process where it seeks to raise a significant amount of capital from investors. This typically occurs after the company has established a product or service, gained some market traction, and is looking to scale its operations, expand into new markets, or invest in research and development. The specific naming of a capital round often denotes the stage of growth. For instance, seed rounds are for early-stage companies, Series A for those needing to accelerate growth, Series B for scaling further, and so on, with subsequent rounds like Series C, D, and E indicating later stages of development and expansion.

During a pääomakierros, companies engage with various types of investors, including venture capital firms, angel investors, private equity firms, and sometimes strategic corporate investors. The goal is to negotiate terms for the investment, which involves agreeing on the valuation of the company, the amount of equity investors will receive in return for their capital, and other key provisions such as board seats and investor rights. Successfully completing a capital round provides the company with the necessary financial resources to execute its business plan and achieve its growth objectives. The process often involves extensive due diligence by investors to assess the company's financial health, market potential, and management team.