As can be observed, this probability reaches a global maximum at 24 months (i.e., across all types of funding rounds).
This means that a CEO should plan to raise at least two years worth of runway in order to maximize the probability of getting funded (while hitting those key milestones, of course).
What is series in 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. In other words, investors commit their capital in exchange for an equity interest in a company., series A financing is a type of equity-based financing.
What are different rounds of funding?
Series A and Series B rounds are funding rounds for earlier stage companies and range on average between $1M–$30M. Series C rounds and onwards are for later stage and more established companies. These rounds are usually $10M+ and are often much larger.
How long does a funding round take?
Many entrepreneurs have found it can take as long as six to nine months to complete this process. The process can be seen from start to finish on the image below. This makes it very important to be raising enough at each round to carry you through to funding, and to effectively always be in fundraising mode.
How does Series A 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.