Editing Startup company (section)

===Investing rounds===
When investing in a startup, there are different types of stages in which the investor can participate. The first round is called [[seed round]]. The seed round generally is when the startup is still in the very early phase of execution when their product is still in the prototype phase. There is likely no performance data or positive financials as of yet. Therefore, investors rely on strength of the idea and the team in place. At this level, family friends and [[angel investors]] will be the ones participating. At this stage the level of risk and payoff are at their greatest. The next round is called [[Series A round|Series A]]. At this point the company already has traction and may be making revenue. In Series A rounds venture capital firms will be participating alongside angels or [[super angel]] investors. The next rounds are [[Series B]], C, and D. These three rounds are the ones leading towards the Initial Public Offering ([[IPO]]). Venture capital firms and [[private equity]] firms will be participating.<ref name="Nasdaq">{{cite web|url=http://www.nasdaq.com/article/with-new-jobs-act-rule-a-new-era-of-investment-banking-cm279813|title=With the new JOBS Act a new era of investment banking?|work=Nasdaq|access-date=24 September 2013|archive-date=4 October 2013|archive-url=https://web.archive.org/web/20131004215201/http://www.nasdaq.com/article/with-new-jobs-act-rule-a-new-era-of-investment-banking-cm279813|url-status=live}}</ref> Series B: Companies are generating consistent revenue but must scale to meet growing demand. Series C & D: Companies with strong financial performance looking to expand to new markets, develop new products, make an acquisition, and/or preparing for IPO.