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Dictionary by pitch.dog
Funding rounds & stages · Working

External round

Also called: outside round

ELI5

New investors supply the new capital.

Used in conversation

“The company wants an external round to add market expertise.”

Definition

A financing involving meaningful new-investor participation.

Here “External round” means: A financing involving meaningful new-investor participation.

Pitch context

You will see “External 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.

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Sources & evidence · 8

Direct term-level sources and supporting source families.