![]() Yellow Card is a pan-African crypto exchange and announced a $40 million Series B funding round in October 2022. Below is a selection of several crypto Series B rounds. Several cryptocurrency companies and startups have successfully raised Series B rounds. If further funding is needed after this round, the company may turn to a Series C round. The round is used to improve a company’s operations and further its growth plans. There is no typical time frame as to how long a Series B funding round lasts. The communication of a plan matters as much as the data underpinning how the company aspires to achieve its goals. Pitch Attractivenessįinally, a Series B raise has to tell a compelling story to potential investors. Roughly speaking, a company has to demonstrate that it can scale its business and maintain or even increase its profitability in the process. Since Series B focuses on scaling a company’s existing business, the raising company needs to show a capacity for profitable growth. For a raising company, it is, therefore, paramount to maintain good relations with its original investors since those can procure new relationships and potential sources of funding for a Series B. Relationship BuildingĪ Series B raise will typically include several investors that have participated in previous funding rounds. Thus, the company has to show how it will commercialize its dominance in the market to successfully raise the round. ![]() Investors look to minimize their market risk at this stage, meaning a Series B company needs to have a solid grip on the niche it is operating in. However, investors may ask for projections of future revenue plans to assess the company’s health. Finance ProjectionsĪ company at this stage needs to have achieved several milestones, often relating to key performance indicators or revenue targets. How to Raise Series B Funding?Ī Series B round includes different aspects for the raising company. They may also ask for sources of revenue or a revenue plan that indicates the company is generating or planning to generate profits. Investors will check how previous assumptions have held up to real-world scrutiny and assess investment viability accordingly. The company's business life cycle can be a challenging aspect of this funding round. Why Is It Difficult to Get Series B Funding? A company can also turn to crowdfunding from the general public. If a company raises a Series B through equity, investors may prefer convertible preferred stock over common stock in order to prevent the dilution of their shares.Īlternatively, a Series B can be raised through fundraising from private equity investors, venture capitalists or credit investments. ![]() Series B investors pay a higher share price for the equity they acquire since the later stage the company is at translates into a lower risk of ruin. Consequently, Series B investors is focused on helping the company to scale its established business. On the other hand, a Series B company already has a significant user base and focuses on growing its business through additional capital, sales, business development and customer service. These are typically early-stage venture capital or private equity firms helping the company to acquire inventory and staff. Investors in a Series A look for a startup with a strategic growth plan. Its product-market fit has been validated, and the company is in its growth stage and focuses on marketing and advertising. What’s the Difference Between Series A and Series B Funding?Ī Series A company develops a unique product or service. However, in contrast to a Series A, a Series B also attracts new venture capitalists that specialize in funding later-stage companies. The round is led by a key investor banging the proverbial drum for the company to draw in other investors. The funding often includes investors from previous round, like Series A. How Does Series B Funding Work?Ī Series B company tends to have a valuation between $30 million and $60 million and has an established business to back up its capital needs. It follows the achievement of major milestones. ![]() The money raised in a Series B funding round comes mostly from venture capitalists and private equity investors. It follows a Series A and precedes a Series C funding round. A Series B funding round is the second round of funding a business. ![]()
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