SeriesB

Series B is a major equity financing round in venture capital, typically occurring after a startup has completed seed and Series A rounds. The primary purpose of Series B is to scale the business: accelerate growth, expand sales and marketing capacity, enter new markets, and strengthen the company’s infrastructure to support increasing demand. At this stage, investors expect to see solid product-market fit and measurable growth in revenue and users.

Companies seeking Series B usually demonstrate ongoing revenue growth, improving gross margins, and scalable unit economics. They present a clear plan to reach larger milestone revenue targets, achieve profitability in the medium term, or sustain rapid expansion. Funds are commonly used to hire personnel, enlarge distribution channels, enhance product development, and invest in operational systems.

Investors and terms: a Series B round is typically led by a venture capital firm with experience in scaling companies. It often includes participation from existing Series A investors and new growth-focused funds or corporate venture arms. Round sizes vary but commonly range from tens to hundreds of millions of dollars, depending on sector and geography. The deal generally involves preferred stock with protections such as liquidation preferences and anti-dilution provisions, and a negotiated post-money valuation.

Relation to other rounds: Series B sits between Series A and later-stage rounds such as Series C or a potential initial public offering. Series A concentrates on product validation and early growth, while later rounds focus on accelerating scale, market dominance, and liquidity.

Outlook and risks: a successful Series B can set the stage for further fundraising or public exit, but outcomes depend on market demand, execution, competition, and broader economic conditions.