Time to Put on the Big Kid Pants – Series A Funding

Written by James Sanders

You have built the business concept and proven your product or service offering is in fact real.  Lots of money has been spent, both yours and likely some seed or angel investor funds.  What’s next?  Well, it’s time to “put on the big kid pants” if you want to go to the next level. 

A company does a Series A (and then B, C D and so on if needed) offering because it needs money to expand its operations through hiring, purchasing inventory and equipment and whatever else is required to accelerate revenue growth.  Funding typically comes from sophisticated and well-established venture capital and/or private equity firms in the form of preferred equity (or a Series A).  Moreover, this preferred equity comes with rights that are superior to common equity holders (e.g. a preferred dividend, special voting privileges, board seats, anti-dilution protection, etc.). 

The bottom line is that if your company has reached this stage, the work does not slow down but accelerates.  The big difference is you now have a lot more at stake because of the new investors and the terms of their investment.  Below are some great articles on Series A funding:

• What Is Series Funding A, B, and C? (Investopedia)
• Series A, B, C, D, and E Funding: How It Works | Startups.com
• Series A valuations in 2025: What founders need to know (zeni.ai)

Next week, we will dive into the private credit aspect of third-party investment.  As always, if any of these options are of interest to you, please make sure you chat with your professional business advisors.