Series A funding
What is a Series A funding?
Series A funding is an investment round that follows early seed capital, aimed at helping a startup move from initial validation toward sustainable growth and profitability. This round often involves raising tens of millions of dollars, with investors acquiring an equity stake in the company in exchange for their capital infusion.
Key objectives
- Expand operations, including hiring, marketing, and infrastructure development.
- Further develop and refine products or services
- Enter new markets and customer segments
- Strengthen business models to generate long-term profits
Typical investors
- Venture capital firms
- Angel investors
- Occasionally, crowdfunding platforms or private equity firms, depending on the company's needs and valuation
Real-life example: Airbnb
Airbnb, the well-known online marketplace for lodging and travel experiences, raised a significant Series A round in 2010. During this round, Airbnb secured around $7.2 million from investment firms such as Sequoia Capital and Greylock Partners. This capital helped Airbnb expand its platform, intensify its marketing efforts, and expand its global user base. The investment was pivotal in transforming Airbnb from a small startup into a dominant player in the sharing economy, paving the way for subsequent funding rounds and rapid international expansion.
Why it matters
Series A marks the company's transition from a start-up with a proof of concept to a growth-stage enterprise capable of scaling sustainably. It provides the financial resources needed to accelerate growth, attract more investors, and prepare for subsequent funding rounds like Series B and C.
How Series A differs from other rounds
- Seed funding is smaller and comes from friends, family, or angel investors, mainly for initial product development.
- Series B and C typically involve larger sums for scaling, entering new markets, or acquiring other companies.
- Series A involves valuation discussions, with companies often valued up to $50 million pre-money, and the investment is structured through the sale of preferred stock at a set share price.
Disclaimer: The information provided in this business glossary is for educational purposes only and should not be considered as financial advice. Always consult with qualified financial professionals before making investment decisions.
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What is a Series A funding?
Series A funding is an investment round that follows early seed capital, aimed at helping a startup move from initial validation toward sustainable growth and profitability. This round often involves raising tens of millions of dollars, with investors acquiring an equity stake in the company in exchange for their capital infusion.
Key objectives
- Expand operations, including hiring, marketing, and infrastructure development.
- Further develop and refine products or services
- Enter new markets and customer segments
- Strengthen business models to generate long-term profits
Typical investors
- Venture capital firms
- Angel investors
- Occasionally, crowdfunding platforms or private equity firms, depending on the company's needs and valuation
Real-life example: Airbnb
Airbnb, the well-known online marketplace for lodging and travel experiences, raised a significant Series A round in 2010. During this round, Airbnb secured around $7.2 million from investment firms such as Sequoia Capital and Greylock Partners. This capital helped Airbnb expand its platform, intensify its marketing efforts, and expand its global user base. The investment was pivotal in transforming Airbnb from a small startup into a dominant player in the sharing economy, paving the way for subsequent funding rounds and rapid international expansion.
Why it matters
Series A marks the company's transition from a start-up with a proof of concept to a growth-stage enterprise capable of scaling sustainably. It provides the financial resources needed to accelerate growth, attract more investors, and prepare for subsequent funding rounds like Series B and C.
How Series A differs from other rounds
- Seed funding is smaller and comes from friends, family, or angel investors, mainly for initial product development.
- Series B and C typically involve larger sums for scaling, entering new markets, or acquiring other companies.
- Series A involves valuation discussions, with companies often valued up to $50 million pre-money, and the investment is structured through the sale of preferred stock at a set share price.
Disclaimer: The information provided in this business glossary is for educational purposes only and should not be considered as financial advice. Always consult with qualified financial professionals before making investment decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.