Every startup business goes through different stages, and there are different ways founders can raise capital in those distinct stages. We have already talked about series A funding in the previous article. Thus, we defined series A as a more obvious one where you build product ideas on your vision, team, and capability. But what is a series B in its core? Let’s figure it out.
What Is Series B Funding?
Series B funding comes when your company is well-established and needs to increase its market reach to go for a larger number of customers.
Series B is a challenging process because it’s essentially an in-between round. Most probably, you already have a lot of data behind the company in terms of interesting reference customers and acquisition models, the team is quite strong, and you’ve brought some beneficial executives. However, there is still some talent missing, and there are different models that haven’t been tested.
We are not frightening you, but how do you get to the other side? And how do you actually bridge that gap and bring on a series B startup round? And here a series B round professional powerpoint presentation is needed – to show investors how you’ve started a way of becoming a world-class company and you’ve proven that it can really scale.
Series B funding meaning is a combination of the momentum that you’ve already built in the company and your vision as the founding executive of the team. At this round, you approach an understanding of how you’re going to realize the full potential value of your company. Momentum is entirely driven by data, metrics, and your traction. A pitch deck designer is the best person to help you depicting it with bright infographics and attractive visuals.
! You need to have a point. You need to sell a story. You need to present a vision. !
✓ What is the market gap?
✓ Where is the market going?
✓ How can you continue to be a significant player?
✓ How do you plan to grow?
✓ Does your vision change significantly from series A to series B?
Series B companies must realize that they must combine their vision and actual data in a really cohesive manner to become successful fundraisers. You cannot sell a vision that does not match the historic data. Likewise, sole data is not enough to sell to get you across the gap to another side of series B.
Who Invests in Series B Funding Round?
Typically, you will have the same investors as on series A. VCs and late-stage VCs will be your common investors. An average funding series B startup can get from them is $15-20M, but it can vary widely with no absolutes. So, you gotta roll the hard six to reach series C and unprecedented success. This budget will open you new opportunities to buying businesses, hiring professionals, and expanding the market.
Summing up, to pass the series B stage successfully, you have to:
- focus on taking the business to the next level, past the development stage;
- complete all significant milestones on series A;
- pour the gas on growth;
- show the ability to reach and surpass well-planned goals;
- build upon that success with additional investment.