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What is a funding round?
A funding round is a moment when a company sells shares to investors to raise money.
- Category Business & money
- Also called Series A, Series B, seed round
- Updated 20 Oct 2026
Funding round, explained simply
A funding round is when a company takes in money from investors. In return, the investors get a small piece of the company.
Rounds often have names like seed, Series A and Series B. The names show roughly how far along the company is.
This matters to you because AI companies need a lot of money for computers and people. A big round can mean a company will keep building its tool, or pay for free offers.
For example, a small team with a new AI app might raise a seed round to hire a few engineers. Later rounds are usually larger.
On ITG Now, daily AI news stories often report when an AI company raises money, so you can see who is growing.
Related terms
StartupVenture capitalValuationAcquisitionIPO
Where you'll see it on ITG Now
- AI newsOtter.ai raises $320M from General Catalyst
- GuideBrag: A Free AI Launch Video Maker for Your Project
- AI newsMicrosoft pulls out of a UK AI data center deal
Questions people ask about Funding round
What is the difference between seed and Series A?
Seed is usually the first money a young company raises. Series A comes later, when the company has something that works and wants to grow.
Does a big funding round mean a company is doing well?
Not always. It shows investors believe in the company, but it doesn't prove the company earns money.
Do funding rounds change the tools I use?
They can. More money may mean faster updates, or it may mean prices change later.