Full Definition
Series B funding is the second major round of institutional venture capital, typically raised when a company has proven its business model and needs capital to scale operations, expand into new markets, and accelerate growth.
Series B rounds typically range from $15 million to $50 million, with valuations between $50 million and $200 million. At this stage, companies are expected to have significant revenue, a proven go-to-market engine, and clear competitive advantages.
What Series B Funds
- Scaling sales and marketing teams
- Geographic or market expansion
- Product line extensions
- Infrastructure and technology investments
- Key executive hires (VP Sales, CFO, CTO)
Real-World Example
An e-commerce platform with $5M ARR raises $30M Series B to expand into three new countries and build a logistics network.
Related Terms
The first major institutional venture capital funding round, typically following seed funding.
A later-stage funding round for companies looking to scale aggressively, acquire competitors, or prepare for IPO.
The phase where a startup has proven product-market fit and focuses on rapidly scaling revenue and operations.
The primary investor in a funding round who sets the terms, contributes the largest check, and often takes a board seat.
The estimated monetary worth of a company, determined through various methods and negotiations.
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