Companies often raise capital through multiple funding rounds, with investors — frequently venture capital firms — providing funding in exchange for preferred stock. These rounds are typically organized into stages known as series rounds and are commonly categorized as early-stage (Series A and B) or late-stage (Series C and beyond).
Here’s how these rounds usually work:
1️⃣ Series A — Helps companies with an initial customer base and a proven concept to further develop their product and grow the business.
2️⃣ Series B — Focuses on scaling the company, expanding production, and growing the customer base.
3️⃣ Series C — Supports more mature companies in optimizing operations, often preparing for an initial public offering (IPO) or strategic acquisition.
If you’re exploring what is a Series A round or how venture capital funding rounds work, understanding each stage helps clarify how startups raise capital and progress toward larger market opportunities.
Building Blocks: Types of Investors, Building Blocks: Private Funds, Building Blocks: Starting a Private Fund, Building Blocks: Types of Investors, Building Blocks: I’ve raised early-stage capital. What next?
« Back to Glossary Index