Rounds of financing

Single rounds of investment are not that common. Entrepreneurs often raise capital in multiple rounds of financing, so that they can take advantage of higher pre-money valuations at each subsequent round. Valuations may rise over subsequent rounds as companies demonstrate proof-of-concept, grow their customer bases, or otherwise increase their probabilities of success. Unlike stages, each round is priced independently and involves a new term sheet specifying the characteristics of the investment. Investors in early rounds typically invest in subsequent rounds to maintain similar ownership percentages in a company over time.

Single round of financing	Staging rounds of financing
Increases the risks	Reduces risk
	Higher pre-money valuations