What Is a Series B?
In the world of startups, funding plays a critical role in a company's success. While seed funding and Series A rounds can get a company off the ground, a Series B round of funding can provide the necessary capital to scale and grow the business. In this article, we'll take a closer look at what a Series B funding round entails and what it means for startups.
Third Round of Funding
A Series B round is the third round of funding that a startup can receive from investors. This round typically occurs after a successful Series A & Seed round and is used to fuel further growth and expansion. In general, Series B funding is intended for companies that have achieved some level of success and are looking to expand their operations or scale their business model.
Achieve Profitability
One of the main goals of a Series B funding round is to help startups achieve profitability. Unlike earlier rounds of funding, which may have been used to cover expenses or develop a prototype, a Series B round is usually focused on generating revenue and achieving positive cash flow. This means that companies seeking Series B funding need to have a clear strategy for how they will monetize their product or service.
Track Record of Growth
To attract investors in a Series B round, startups need to demonstrate a track record of success. This could include showing growth in revenue, user acquisition, or market share. Startups also need to have a solid plan for how they will use the funding to achieve their goals. Investors will be looking for a clear understanding of the market, the competition, and how the startup plans to differentiate itself.
In terms of the amount of funding raised, Series B rounds can vary widely depending on the needs of the startup. On average, companies raise between $7 million and $10 million in a Series B round, although some may raise more or less depending on their goals and the level of interest from investors.
Hire a Startup Advisor
Overall, a Series B funding round is an important milestone for startups. It signals that the company has achieved some level of success and is poised for further growth. With the right strategy and a solid plan for how to use the funding, startups can leverage Series B funding to take their business to the next level.
Upthriving is a fully integrated startup growth service for entrepreneurs that have built a product with market fit. More than a startup advisory service, we execute projects that maximize revenue for your business while you focus on building the product.