Series A Funding — “Put On The Big Boy Pants”
You have taken the time to build the business concept and prove 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? As I was told by many great coaches and mentors, it’s time to “put on the big boy pants”. However, what does that mean? Usually (actually always) you need capital to get to the next level. This is where Series A Funding comes into play.
Series A Funding occurs when a company reaches a point where 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. The preferred equity usually has rights that are superior to common equity holders.
The bottom line is that if you have reached this stage, the work does not slow down, but accelerates. Moreover, you now have a lot more at stake because of the new stakeholders. Below are some great articles on Series A funding:
- Learn The Five Most Important Terms In A Series A Funding Round (forbes.com)
- Series A, B, C, D, and E Funding: How It Works | Startups.com
- What the Seed Funding Boom Means for Raising a Series A (firstround.com)
- What are Series A VCs looking for? Many seed investors aren’t so sure anymore | TechCrunch
Next week, we will wrap up this series on some other forms of private investment options for businesses. As always, if any of these options are of interest to you, please make sure you chat with your professional business advisors.
Here are a few other things that may be of interest:
- Sales Slowdown: After active 2022, M&A market is seeing much less activity in 2023…though, that may change – The DAK Group
- 3-Part Framework: How to decide to sell your business or expand? – The DAK Group
- Data Driven Change Management (eisneramper.com) (10/25 2-3pm EST)
- Year-End Tax Strategies (eisneramper.com) (11/20; 12-330pm EST)
As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.
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