What is an inside round?

An inside round is a financing led and filled by existing investors, with no new lead setting an external price. Insiders investing more is a real signal of conviction — but the absence of a new investor also removes the market check on valuation.

Inside rounds are common as extensions and bridges. Governance care matters: boards approving a price to themselves is a conflict, so companies often add a new co-investor or use independent processes for the price.