Pre-expansion funding is a late-stage seed round of investing used by revenue-generating startups that require a calculated investment in order to secure intellectual property and/or prepare operations for scale. These rounds are always priced equity rounds, as the raise assists the company in establishing and formalizing its market value. Well-informed founders balance funding for this round between a strategic outside lead investor and a final friends and family round. Securing investment from the right private equity firm not only introduces the startup to new and broader sources of capital; it also expands the depth and breadth of its business network. Formally offering shares of this priced-equity round to friends and family mitigates risk to initial seed investors and provides validation to those who were on the fence during initial fundraising efforts.