Equity Round

A capital round is a method of financing in which a company sells new shares to raise capital from investors. The money raised from the sale of these shares can be used for various purposes such as company expansion, product development, marketing or financing ongoing operations. Investors can be individuals or institutional investors, depending on the stage of development of the company and the size of the financing round. Although this type of financing can lead to the dilution of existing shares, the capital injection is intended to increase the overall value of the company, which benefits all shareholders. The price of the new shares is based on the valuation of the company at the time of the capital round and is influenced by various factors such as past performance, future prospects and market conditions. Capital rounds are also subject to legal provisions and regulations to protect companies and investors.