Business Pitch Dictionary by pitch.dog
Funding rounds & stages · Core

Equity round

Also called: stock financing

ELI5

Investors put in money and receive ownership securities.

Used in conversation

“The equity round dilutes existing holders.”

Definition

A financing in which investors receive equity securities in exchange for capital.

Here “Equity round” means: A financing in which investors receive equity securities in exchange for capital.

Pitch context

You will see “Equity round” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding rounds & stages.

Why it matters: In funding rounds & stages, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 8

Direct term-level sources and supporting source families.