Quick Answer: How Does Series B Funding Work?

What is Series B funding?

Series B financing is the second round of funding for a business through investment including private equity investors and venture capitalists.

Successive rounds of financing a business are consecutively termed Series A, Series B and Series C financing.

How does series funding work?

Series A funding is typically the first round of capital that is invested by outside investors. Series A funding is often after the company has generated a revenue stream, but may not yet be profitable. Usually Series A funding is in some form of preferred stock with preset values that can be converted to common stock.

What is Series A funding and Series B funding?

Series A funding, (also known as Series A financing or Series A investment) means the first venture capital funding for a startup. The Series A funding round follows a startup company’s seed round and precedes the Series B Funding round. “Series A” refers to the class of preferred stock sold.

What are rounds of funding?

The funding round meaning refers to the rounds of funding that startups go through to raise capital. The startup company will go through several rounds of valuation that will increase as a startup proves its increasing probability of success, customer base growth, and proof of concept.