Series A / B / C Funding Rounds
Definition
Series A, B, and C refer to successive rounds of venture capital financing that startups raise as they scale. Each round is named after the class of preferred stock issued and typically corresponds to a growth stage: Series A for product-market fit, Series B for scaling, and Series C for market dominance or pre-IPO growth.
Overview
Series A, B, and C are labeled rounds of equity financing, each associated with distinct milestones and expectations. Series A typically follows seed funding and signals that the company has demonstrated product-market fit and needs capital to optimize its go-to-market motion. Round sizes generally range from $5–15M at $20–60M+ valuations.
Series B funds proven scaling. The company has established repeatable sales processes, strong unit economics, and clear market demand. Capital is deployed to expand the team, enter new markets, or build new product lines. Round sizes typically range from $15–50M at significantly higher valuations.
Series C and beyond fund market leadership, international expansion, acquisitions, or preparation for an IPO or significant exit. At this stage, investors include growth equity firms, crossover funds, and sometimes corporate strategic investors. Each subsequent round involves issuing a new class of preferred stock (Series A Preferred, Series B Preferred, etc.) with potentially different rights and preferences.
Example
A SaaS startup raises a $2M seed round, then a $10M Series A at $40M pre-money after reaching $1.5M ARR, then a $30M Series B at $150M pre-money after hitting $8M ARR.
Related Articles
Related Calculators
Track Series A / B / C Funding Rounds and more with culta.ai
Start free and get real-time visibility into the metrics that matter for your startup.