

Ask HN: What exactly is seed vs. series A-F vs. Debt vs. other kinds of rounds? - vishalzone2002

Hi
  is there a resource that can help a first time founder get clear picture on various rounds of fund raising? 
  Some people mentioned that it not necessarily a good thing if a company has raised money beyond series D. Most startups are expected to turn profitable by that round. Is it true?<p>Thanks !!
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tptacek
It seems like a good general rule of thumb that firms that raise B+ rounds are
either (a) capable of flipping a switch to become pro-forma profitable or (b)
extraordinary, with demonstrable traction backed by something more than a
story.

It's tricky to reason about profitability in startups, because most
"successful" unprofitable startups _choose_ not to be profitable, usually in
order to buy further market share.

The big difference between a seed round and an A-round in practice seems to be
that valuations for seed rounds are usually casual (and sometimes nonexistent,
deferred to the A round), and A-rounds always come with a valuation.

Generally, a seed and (sometimes) an A round are things you could imagine
getting without being in immediate striking distance of real profitability.

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27182818284
Yes, [http://www.amazon.com/Venture-Deals-Smarter-Lawyer-
Capitalis...](http://www.amazon.com/Venture-Deals-Smarter-Lawyer-
Capitalist/dp/1118443616)

By no means is that complete, but that should give you a primer, and I learned
about it from other startups that successfully have raised funds. (I was in
the dark too at a point.
[https://news.ycombinator.com/item?id=4064276](https://news.ycombinator.com/item?id=4064276))

The other big thing is just to get out and talk with other founders near you.
I found (at least in our community) they were very willing to share
information over a beer or soda.

