What do the Series A, B, C… funding rounds mean? [Infographic]

Startup Funding round meaning

Every other day there is a news of one startup or the other raising capital. All these startup funding news come along with a specific series round letter attached to them. Yesterday, Oyo Rooms raised $100 Million from Softbank and other investors in a series D round. What do these funding rounds and the letter associated with them signify?

Here is an infographic that details what the different funding rounds mean, which type of investor participate in these rounds and how much capital is generally raised in the different rounds:

What do series a, b, c funding rounds mean - startup funding

The A, B, C of Funding Rounds:

Seed Funding

Figure Out the market & build MVP

The purpose of the series seed is for the company to figure out the product it is building, the market it is in, and the user base. Typically, a seed round helps the company scale to a few employees past the founders and to build and launch an early product.

Who Invests?
Angels, SuperAngels, and early stage VCs all invest in seed rounds.

Amount Invested
Typically ranges between $50k to $2 Million

Series A Funding

Scaling the product and getting to a business model

The purpose of Series A is to figure out or scale distribution, scale geographically or across verticals and figure out a business model

Who Invests?
Venture Capitals with some seed participation

Amount Invested
Typically ranges between $2M to $15 Million

Series B Funding

All about scaling

You have traction with users, and typically you also have a business model that has come together. Typically to make acquisitions and scale user base.

Who Invests?
Venture Capitals. Generally, those who have invested in Series A and some additional firms

Amount Invested
In tens of millions.

Series C and Beyond

Fast growth & consolidation

Series C and beyond rounds are utilized for growing at a rapid pace and starting to consolidate by acquiring smaller competitors

Who Invests?
Venture Capitals. Generally, those who have invested in Series A and some additional firms
Amount Invested
Runs into hundreds of millions of dollars.

 

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