External Round: Raising capital outside the company

An external round is a financing round in which start-ups raise capital from external investors, such as venture capital firms, business angels or other investors, to finance growth and expansion. This external capital procurement enables young companies to mobilise significant resources for product development, market launch and scaling without having to rely on internal funds. By successfully executing an external round, startups can not only strengthen their financial base, but also build valuable partnerships and networks that are crucial for long-term business growth.