Series B (Series B Funding)
Growth funding for companies that have proven their business model and are ready to expand market reach and scale operations significantly.
Definition
Series B funding is designed to help companies scale beyond the initial growth phase achieved with Series A. Companies at this stage have established market traction, proven unit economics, and are ready to expand into new markets or significantly increase their market share.
Typical Characteristics
- • Funding range: $10M - $50M typically
- • Investors: Later-stage VCs, growth equity firms
- • Stage: Proven business model, scaling phase
- • Equity: 10-20% typically given to investors
- • Timeline: 24-36 months runway typically
- • Focus: Market expansion and operational scaling
Real-World Example
E-commerce Platform: Raises $25M Series B at $150M post-money valuation
The company has proven product-market fit, strong revenue growth, and uses funding to expand internationally and enhance platform capabilities.