Essentially, the series A round is the second stage of startup financing and the first stage of venture capital financing., the series B round is a type of equity-based financing.
In other words, investors provide capital to a company in exchange for the latter’s preferred shares.
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 B funding work?
Series A, B, C Funding: How It Works. A startup with a brilliant business idea is aiming to get its operations up and running. These funding rounds provide outside investors the opportunity to invest cash in a growing company in exchange for equity, or partial ownership of that company.
What are different types of funding?
Other types of startup funding
Crowdfunding. Small Business Loans. Small Business Grants. Private Investors.
What is the difference between Series A and B 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.