Alphabet Rounds

You invent a new gadget that you know will revolutionize the world and it's not a battery operated "personal massage" device that comes in anonymous wrapping from China. You head out to find some venture capitalists who will give you the start-up funds to get production going. You find someone who's interested and they give you a stack of cash. That's your Series A financing.

You use that money to get started and things are going well. But down the road a bit, you need more money to really ramp up business. You find some new investors...that second group represents your Series B financing. Fast forward a bit and you're ready for yet another injection of cash. Time for Series C.

See where we're going with this? The early rounds of venture capital fundraising are often referred to as the "alphabet rounds" because each successive round has a letter associated with it. These distinctions only indicate where it happens in chronological order (A happens before B, B before C)...the letters aren't grades of any kind (it's not like the Series A funds studied harder than Series B).