Series B financing,
Definition of Series B financing:
Series B financing is the second round of funding for a business through investment, including private equity investors and venture capitalists. Successive rounds of financing a business are consecutively termed Series A, Series B, and Series C financing. The Series B round generally takes place when the company has accomplished certain milestones in developing its business and is past the initial startup stage.
The second round in a series of equity financing in a growing company. Venture capitalists label financing rounds alphabetically (e.g. Series A, Series B, Series C, etc.). This round typically occurs following the attainment of certain milestones.
In a Series B financing round, companies have advanced their business, resulting in a higher valuation by this time. Companies can seek various ways to raise funds in a Series B financing round. Series B investors usually pay a higher share price for investing in the company than the earlier investors through the Series A financing round.
How to use Series B financing in a sentence?
- Series B investors typically prefer convertible preferred stock vs. common stock due to the anti-dilution feature of preferred stock.
- Series B funding can come from private equity investors, venture capitalists, crowdfunded equity, and credit investments.
- Series B financing is the second round of funding for a company that has met certain milestones and is past the initial startup stage.
- Series B investors usually pay a higher share price for investing in the company than Series A investors.
Meaning of Series B financing & Series B financing Definition