What is a Series A round of funding?

Series A financing (also known as series A round or series A funding) is one of the stages in the capital-raising process by a startup. Essentially, the series A round is the second stage of startup financing and the first stage of venture capital financing.

What is Series A & B funding?

Series A funding is considered seed capital since it’s designed to help new companies grow. Series B financing is the next stage of funding after the company has had time to generate revenue from sales. Investors have a chance to see how the management team has performed and whether the investment is worth it or not.

What is the difference between Series A and B?

Series A startups are those that have the very beginnings of a business with a customer base, proof of concept, etc. Series B funding is typically for startups that are looking to increase production or sales.

What is typical series A funding?

What is the average series A funding amount? As of 2019, the average Series A funding amount is $13 million. The average Series A startup valuation in 2019 is $22 million.

How big is a series A round?

Series A funding round sizes have grown significantly in recent years. Over the past decade, the average global Series A round increased from less than $6 million to more than $18 million, Crunchbase data shows. The median has grown from $3 million to $10 million over the same time period. However, the trend is clear.

What are Series A investors looking for?

Most Series A investors are looking for significant returns on their money, with 200% to 300% not uncommon. Startups provide Series A investors with detailed information on their business model and projections for future growth. The prospective Series A investors will then perform their due diligence.

How hard is it to raise a Series A?

It is quite hard to raise Series A from new investors without a lot of love and support and endorsement from your existing Seed investors.

How much equity should I get in Series A?

It all really depends on how much value they are giving you (not only financial, sometimes even just moral support goes a long way). Some founder’s ‘should’ get 5%, some should get 50% or more. 2. Ask the potential partner how much shares they want (BEFORE you name a number).