Glossary

Series Funding

What is Series Funding?

Series funding is the step that comes after seed funding, which is typically your first equity funding stage. Reaching this milestone is a big deal because your startup has probably developed a proof of concept and has begun expanding operations. 


What are the series of funding for startups?

Many companies complete a number of fundraising rounds before getting to the initial public offering (IPO) stage. The initial investment—also known as seed funding—is followed by various rounds, known as Series A, B, and C.

 

What is Series A and Series B funding?

The Series A funding round is about finding investors who can help transform your great ideas and business strategies into a successful, money-making business. Series A funds allow for a startup to continue investing in crucial areas such as staffing and product development.
Series B is about taking businesses past the development stage and expanding market reach. Companies going through Series B have grown substantial customer bases during their previous funding round and use the new funding to grow, enabling them to meet new levels of demand.


What is a good Series A funding amount?

Typically, Series A rounds raise between $2 – $15 million, but this number has increased over the years. In 2021, the median Series A funding was $10 million.


What is Series C funding of a startup?

In series C rounds, investors inject capital into successful businesses to help them develop new products, expand into new markets, or even to acquire other companies. Series C funding focuses on scaling the company and growing as quickly as possible.

 
How Many Series of Funding Before IPO?

The number of seed rounds a company goes through before completing an initial public offering (IPO) is typically no more than three (e.g., A, B, and C). However, there are no rules around the number of seed rounds a company can undergo.


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