Startups fundraise in 'rounds' as they prove out their business and scale

Seed funding is often the first round of capital that a startup raises

Early-stage startups often try to secure seed funding from investors in order to take their idea from concept to reality.

Angel investors often come together as a syndicate

Startups raise money in different rounds from investors that include their friends and family, angels, and venture capital funds. These types of investors serve different purposes.

Venture capital is a type of financing that firms and funds use to invest in startups they believe have the potential for long-term growth

Household name companies such as Airbnb and Uber might not exist without venture capital, which is commonly referred to as "VC" for short.

Venture capital is a form of funding provided to early-stage companies with high growth potential, typically in exchange for an equity (or ownership) stake

Platforms like AngelList help angel investors find startups to fund

Angel investors leverage their high net worths to fund seed-stage startups. While they could see high returns, investing in such an early company is a risk.

Startup accelerators offer mentorship and seed funding in exchange for equity

Those programs, such as Y Combinator and Techstars, not only offer expert advice to founders, but also seed funding in exchange for equity. The goal is to help young startups learn from successful companies, making it more likely they attract venture capital.

Startup founders’ equity becomes diluted as they bring in more investors

When an angel investor funds a company in exchange for equity, startups issue new shares to them, rather than giving them existing shares, and boost the company’s valuation.

Unlike small businesses, startups aim to disrupt entire industries

They also differ from small businesses in that startups have a higher level of risk, may take on outside funding from venture capital firms to boost growth, and more.

2025 venture capital funding by destination, visualized

This chart's source, Dealroom, uses "breakout capital" to refer to funding rounds or companies in the $15M to $100M total funding range. It labels the startup stage as under $15M, and the scaleup stage as $100M+.

Global investing in startups hit a record $297B in Q1 2026

The level of startup funding around the world broke all previous records in Q1 2026 by a significant margin: Only $118B was raised in the previous quarter, and Q1's haul outpaced every full year of global VC activity before 2019. The increase was partly due to the enormous funding rounds from AI companies such as OpenAI and Anthropic.

Many startup founders pull out-of-the-box stunts to get their businesses off the ground

Do you know Airbnb’s founders used cereal (yes, as in the breakfast food) to secure their initial round of funding? Or that PayPal’s founders once gave out free money to get people to sign up for the platform? These stories might be crazy, but they’re not uncommon.

Early-stage investors say ‘no’ to the vast majority of funding pitches

Angel investor Alicia Syrett details the top reasons investors turn down entrepreneurs. For example, the entrepreneur didn’t do their homework by, for instance, not researching the investor.

Nonprofit VC funds invest in startups, but have donors instead of LPs

Examples include Andreessen Horowitz’s TxO (Talent x Opportunity) Initiative and Fifth Star Funds, which allows donors to write “Friends & Family” checks for Black tech founders.

Dive deep into the numbers that shape each YC deal

Y Combinator invests $500K into each company in any given batch. $125K of that investment converts into a fixed 7% in ownership of the startup, and the other $375K is invested on something called an uncapped MFN safe. YC explains what that means and more terms of the deal in a detailed article on their website

Convertible notes represent loans that startups owe investors

In the second part of a two-part series, convertible notes are explained to be a tool angel investors use to ensure they see a return on their investment in a startup.

The 50-100-500 rule: when a startup is no longer a startup

According to startup expert Alex Wilhelm, a company cannot be considered a startup if it generates revenue exceeding $50M, employs more than 100 people, and has a valuation of $500M or more. However, Wilhelm modified the rule in 2018 to $100M in revenue, over 500 employees, and a valuation of $2.5B or more.

An initial public offering or 'IPO' is the process of a private company becoming public by putting shares of the company on the stock market for purchase.

SPACs, explained

Special purpose acquisition companies make it easy for mature unicorns (companies valued at over $1B) to receive growth capital by going public. This process effectively skips the work of a traditional initial public offering, and its time-intensive investor negotiations. Typically, a well-known investor with expertise in a certain industry sponsors a SPAC with the intent to acquire a startup. Learn how it works and the risks involved here.

Companies pay multiple fees as part of the IPO process

When a company decides to approach IPO, it typically hires investment bankers—who earn about 7% of the IPO’s gross proceeds—to help set the organization’s target valuation range and schedule an IPO date. But that isn't the only fee associated with the IPO process.

More than 400 investors turned Peloton down in its initial funding rounds

Peloton founder John Foley said investors rejected the company's initial funding requests because there was no clear indication of what the market for at-home fitness classes looked like. Ultimately, more than 200 angel investors gave the company its first round of cash. (Some users may experience a paywall.)

The cryptocurrency equivalent of going public

An initial coin offering (ICO) is cryptocurrency's version of an initial public offering (IPO). Similar to the way a company offers shares on the stock market for the first time, ICOs occur when a cryptocurrency company seeks to raise funding for a new coin, app, or service. If you're entering the field, get the details on how it all works.

Learn how to read a prospectus, the juicy document that any company must file with the SEC before going public.

How university endowments invest in the capital markets

This PitchBook article explores how university endowments invest in capital markets to support their institutions. It explains how endowments are structured and managed to generate returns that fund scholarships, research, and operations. The piece also discusses the evolution of endowment investment strategies. This is a valuable read for understanding the financial mechanisms behind academic endowments.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Open-end and closed-end funds differ in how they create and distribute shares

Open-end funds are able to create new shares on a daily basis, while closed-end funds have a set number of shares. This impacts the way shares are traded on the open market, and the way they’re priced.

Explore a step-by-step guide for getting started as a retail investor

Instead of purchasing individual stocks and bonds, new investors may want to start in funds that track an index—like the S&P 500—or that hold a group of themed stocks.

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

Film festivals are where independent projects find studios

Film festivals are incubators for the movie industry, providing smaller films and their producers with opportunities to screen in front of live audiences, as well as potential investors who may offer wider distribution.

Many dot-com companies spent some investor money on expensive parties

Parties hosted by dot-com companies were known to be extravagant and expensive. Technology companies in the Bay Area hosted between 15 and 20 parties a week on average, which cost between $30K and $50K on average.

F1 is a billion-dollar industry

...but that money doesn't come easily. Team principals have to constantly ensure money is coming in to fund their million-dollar cars every weekend. This CNBC video explores all the costs of running a team. It also shows how team principals woo sponsors and find ways to maximize their technology with a cost cap.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

Up to a million Girl Scouts sell about 200 million cookie boxes every spring, generating $800 million, largely because refusing a child is frowned upon

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

About 2,000 US babies are born annually without some portion of their limbs, potentially leading to a lifetime of pricey prosthetics.

Play the role of a student in a game where you try to navigate college and remain debt-free, selecting different income levels, high school experience, race, ethnicity, and more.

Children are now three times more likely to say they want to be a YouTuber when they grow up than an astronaut, with some even attending 'YouTube camps' that teach kids how to create content for the platform.

Calculate how much of your tax dollars go to each federal program based on your income, filing status, and number of children

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

The 2026 Ebola outbreak in the DRC is spurring new Ebola vaccine development for the Bundibugyo species.

The 1987 Nintendo video game 'Stadium Events' isn't known for being particularly fun, but its scarcity has made it a highly sought-after item that has sold for up to $35K at auction.

Budweiser stores yeast derived from the original 1800s strain in a secret bunker, which only the Head of Yeast Management can access—not even the CEO

Doctors differentiate between a phobia and fear by asking patients whether their fear interferes with their day-to-day activities.

All rainbows are 'raincircles' caused by water droplets separating white sunlight into a spectrum of colors, but Earth's surface blocks the bottom half of the circle from our line of sight.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

Crows are believed to have intelligence on par with a seven-year-old child and demonstrate complex behaviors, from problem-solving with tools to recognizing human faces.

Take a 3D tour of the Hajj, Islam's annual pilgrimage to Mecca, undertaken by more than 1.5 million Muslims each year.

See this overview of the firework rules across all 50 states, ranging from a complete ban on non-professional fireworks in Massachusetts to states with more lax rules like Indiana.