{"id":153076,"date":"2023-03-23T07:00:16","date_gmt":"2023-03-23T07:00:16","guid":{"rendered":"https:\/\/startups.co.uk\/?p=153076"},"modified":"2023-03-23T16:31:16","modified_gmt":"2023-03-23T16:31:16","slug":"series-funding","status":"publish","type":"post","link":"https:\/\/startups.co.uk\/funding\/investors\/series-funding\/","title":{"rendered":"Series Funding: differences between Series A, B &amp; C rounds explained"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]If you&rsquo;re looking to launch your startup, or are in the early stages of establishing your business, then you may have a long-term vision for huge growth. And that type of growth needs investment.<\/p>\n<p>Despite all the overwhelming challenges of our economy, including the cost of living crisis creating a lack of access to capital, the dream of one day owning a business that&rsquo;s a household name may have definitely crossed your mind. <strong>But how do you do it?<\/strong><\/p>\n<p>The answer lies in what all the big companies do at some point to grow, and it&rsquo;s what we are talking about in this article today: <strong>Series A, B, and C funding.<\/strong><\/p>\n<p>In this guide, we&rsquo;ll explain the key differences between each of these funding rounds, and the stages of growth your business will need to have reached to attract such investment. Plus, we&rsquo;ll arm you with the info you need to understand the business benefits &ndash; and risks &ndash; that come into play at each stage.[\/vc_column_text]<\/p><div class=\"jumplinks-content\">\n <h3 class=\"jumplinks-content-title\">\n In this article, we will cover: <\/h3>\n <ul class=\"jumplinks-content-list\">\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-how-do-funding-rounds-work\">How do funding rounds work?<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-what-is-series-a-funding\">What is Series A funding?<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-what-is-series-b-funding\">What is Series B funding?<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-what-is-series-c-funding\">What is Series C funding?<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-beyond-series-c\">Beyond Series C<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-conclusion\">Conclusion<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-faqs\">FAQs<\/a>\n <\/li>\n <\/ul>\n<\/div>\n[\/vc_column][\/vc_row][vc_row][vc_column]<div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-how-do-funding-rounds-work\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>How do funding rounds work?<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-153077 size-full\" src=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-1.png\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-1.png 1024w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-1-480x360.png 480w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-1-640x480.png 640w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-1-768x576.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\">[\/vc_column_text][vc_column_text]<\/p>\n<p style=\"text-align: center\"><b>Series A:<\/b><span style=\"font-weight: 400\"> &pound;2-18 million <\/span><b>(<\/b><a href=\"https:\/\/chacc.co.uk\/small-business-advice\/series-funding\/#:~:text=How%20much%20money%20can%20you%20raise%20with%20Series%20A%20Funding,million%20to%20%C2%A315%20million.\"><b>Source<\/b><\/a><b>\/<\/b><a href=\"https:\/\/www.indeed.com\/hire\/c\/info\/series-a-funding\"><b>Source<\/b><\/a><b>)<br>\n<\/b><b>Series B:<\/b><span style=\"font-weight: 400\"> &pound;5-33.9 million <\/span><b>(<\/b><a href=\"https:\/\/visible.vc\/blog\/startup-funding-stages\/\"><b>Source<\/b><\/a><b>\/<\/b><a href=\"https:\/\/globacap.com\/wp-content\/uploads\/2021\/06\/Series-B-crunch.pdf\"><b>Source<\/b><\/a><b>)<br>\n<\/b><b>Series C: <\/b><span style=\"font-weight: 400\">&pound;100-120 million <\/span><b>(<\/b><a href=\"https:\/\/chacc.co.uk\/small-business-advice\/series-funding\/\"><b>Source<\/b><\/a><b>)<\/b><\/p>\n<p>[\/vc_column_text][vc_column_text]<b>Starting at the beginning:<\/b><span style=\"font-weight: 400\"> to grow, you will need to aim to secure <\/span><a href=\"https:\/\/startups.co.uk\/funding\/investors\/how-does-venture-funding-work\/\"><span style=\"font-weight: 400\"><strong>venture capital<\/strong><\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<p><span style=\"font-weight: 400\">This is where funding in all its different forms comes into play. Once you have secured your investors, the traditional way funding rounds work is to provide you with a specific amount of funding (and potential support) that is relative to the stage of business you&rsquo;re in. <\/span><\/p>\n<p><span style=\"font-weight: 400\">As your business grows, this will increase incrementally as and when investors or company founders feel that more funding is needed. This growth will follow the pattern of the alphabet.<\/span><\/p>\n<h3>How does Series round funding differ from pre-seed and seed funding?<\/h3>\n<p><span style=\"font-weight: 400\">Series A, B and C funding is available only to startups that are somewhat already established. They usually have to be already seen as &ldquo;up and coming&rdquo; and already growing steadily or rapidly.<\/span><\/p>\n<p><span style=\"font-weight: 400\">For any businesses that are not at this stage yet, there are a couple of phases before series A, B, or C begin. These are pre-seed and seed funding stages &ndash; but these are rare to obtain. <\/span><\/p>\n<p><span style=\"font-weight: 400\">While it is harder, it&rsquo;s not impossible to get funding for a business that hasn&rsquo;t started yet, or is only in the business idea or business plan stage. <\/span><\/p>\n<p><span style=\"font-weight: 400\">In such cases, if a venture capital firm or angel investor decides that they really love and believe in your idea, you may receive what is known as <\/span><a href=\"https:\/\/startups.co.uk\/funding\/sources\/seed-funding-and-pre-seed-funding-explained\/\"><strong>pre-seed or seed funding<\/strong><\/a><span style=\"font-weight: 400\"> before your seed funding stage begins.<\/span>[\/vc_column_text]\n <\/p><div class=\"highlight-box\">\n <div class=\"highlight-box-decor\">\n <svg class=\"brush-stroke-svg brush-stroke-big\" preserveaspectratio=\"none\" viewbox=\"0 0 116 6\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" 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64.6155766,5.98060148 64.6758363,6 Z M90.6789362,4.03643854 C90.5885466,4.03643854 90.4680271,4.01704002 90.3776375,4.01704002 C90.1365986,4.01704002 90.0160791,4.03643854 90.1667284,4.05583706 C90.2269882,4.05583706 90.4077674,4.07523558 90.498157,4.05583706 C90.5885466,4.07523558 90.6186765,4.05583706 90.6789362,4.03643854 Z M86.2696559,4.0213508 C86.0888766,4.0213508 85.9080974,4.0213508 85.7273182,4.0213508 C85.546539,4.0213508 85.4260195,4.04074932 85.4862792,4.04074932 C85.6369286,4.04074932 85.8478377,4.06014784 86.0286169,4.06014784 C86.1792662,4.06014784 86.2696559,4.04074932 86.2696559,4.0213508 Z\"><\/path>\n <\/g>\n <\/svg>\n <\/div>\n <div class=\"highlight-box-headline\">\n \n <span class=\"highlight-box-title\">\n How long between funding rounds? <\/span>\n <\/div>\n \n <div class=\"highlight-box-content\">\n <p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-153082\" src=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43.png\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43.png 1024w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-480x360.png 480w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-640x480.png 640w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/03\/Series-A-B-C-Funding-Presentation-43-768x576.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\"><\/p>\n<p style=\"text-align: center\"><b>Series A to B:<\/b><span style=\"font-weight: 400\"> 3-18 months <\/span><b>(<\/b><a href=\"https:\/\/www.wallstreetmojo.com\/funding-rounds\/#:~:text=The%20funding%20stages%20progress%20from,between%20each%20round%20of%20funding.\"><b>Source<\/b><\/a><b>)<br>\n<\/b><b>Series B to C:<\/b><span style=\"font-weight: 400\"> 8-27 months <\/span><b>(<\/b><a href=\"https:\/\/www.tealhq.com\/post\/startup-funding-stages-explained-for-potential-employees#:~:text=The%20average%20time%20from%20a%20startup%20raising%20a%20Series%20B,to%20an%20IPO%20or%20acquisition.\"><b>Source<\/b><\/a><b>)<br>\n<\/b><b>Series C to beyond or Public:<\/b><span style=\"font-weight: 400\"> 6-9 years <\/span><b>(<\/b><a href=\"https:\/\/eqvista.com\/series-funding\/series-c-funding\/#:~:text=Analyzing%20the%20startups%20that%20raised,of%20IPO%20from%20Series%20C.\"><b>Source<\/b><\/a><b>)<\/b><\/p>\n<p><\/p>\n <\/div>\n <\/div>\n[\/vc_column][\/vc_row][vc_row][vc_column]<div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-what-is-series-a-funding\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>What is Series A Funding?<\/h2>\n<p><span style=\"font-weight: 400\">Series A funding refers to the first official round of financing by venture capitalists or other investors. This excludes any pre-seed or seed rounds, which are rare and not a given for every business (as mentioned above).<\/span><\/p>\n<h3>When does Series A funding happen?<\/h3>\n<p><span style=\"font-weight: 400\">During Series A funding, investors are typically looking for a <strong>market-proven product<\/strong> that will allow you to <strong>easily multiply revenue within 18 months.<\/strong><\/span><\/p>\n<h3>How does Series A differ from other forms of investment?<\/h3>\n<p><span style=\"font-weight: 400\">Series A is a crucial growth development and funding stage where investors (particularly early-stage investors) may be attracted by the potential of your company.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">This is an excellent time to capitalise on that hype and to make a great impression with ROI. Play this stage right, and it can set you up really nicely for the next rounds.<\/span><\/p>\n<h3>How much equity do investors take at Series A?<\/h3>\n<p><span style=\"font-weight: 400\">Small business owners should expect to give away around <\/span><b>20-25% of their company equity<\/b><span style=\"font-weight: 400\"> at this stage, as this is the industry standard.<\/span><\/p>\n<h3>What are the benefits and drawbacks of Series A Funding?<\/h3>\n<p><span style=\"font-weight: 400\">At this stage, Series A funding is particularly useful in building the foundations of the business that will help propel the company forward and hopefully have it start strong right out of the gate.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Building foundations involves:&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><strong><a href=\"https:\/\/startups.co.uk\/strategy\/the-ultimate-wholesale-guide\/\">Investing in your first stock materials from wholesalers<\/a>&nbsp;<\/strong><\/li>\n<li style=\"font-weight: 400\"><strong><a href=\"https:\/\/startups.co.uk\/people\/labour-costs-guide\/\">Covering your first initial labour costs<\/a><\/strong><\/li>\n<li style=\"font-weight: 400\"><strong><a href=\"https:\/\/startups.co.uk\/people\/employment-law\/a-step-by-step-guide-to-setting-up-a-new-employee\/\">Employing your first team members.<\/a><\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">While some people do receive financial help from friends and family members when they are just starting out with their businesses, it is usually not enough to cover all of these things in the same way Series A can.<\/span><\/p>\n<p><span style=\"font-weight: 400\">One of the main drawbacks is the loss of complete control &ndash; and this will be prevalent in all types of funding. When you accept series A funding, investors become <\/span><a href=\"https:\/\/startups.co.uk\/people\/management\/stakeholder-management-guide\/\"><span style=\"font-weight: 400\"><strong>stakeholders<\/strong><\/span><\/a><span style=\"font-weight: 400\"> in your company. With that will come a whole new wave of responsibility, management duties and differing opinions on what your company should do next. All of that will need to be regulated and mitigated which can quickly become overwhelming if it&rsquo;s not handled correctly<\/span><\/p>\n<h3>Is it hard to get Series A funding?<\/h3>\n<p><span style=\"font-weight: 400\">It is not hard to get Series A funding, as long as the conditions above are met &ndash; i.e, the company needs to already have been market proven for you to receive this kind of funding.&nbsp;<\/span><\/p>\n<p><b>Investments at Series A stage are still considered risky<\/b><span style=\"font-weight: 400\">. But, with significant capital and a working product, investors can still expect strong capital growth if the business does well.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Investors will also be more likely to back a business at this stage if the entrepreneur in question has already had a successful large exit with a previous startup, or already has significant experience and connections within their industry.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-what-is-series-b-funding\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>What is Series B Funding?<\/h2>\n<p><span style=\"font-weight: 400\">Series B funding refers to the <\/span><b>second official round of financing<\/b><span style=\"font-weight: 400\"> by venture capitalists or other investors.<\/span><\/p>\n<h3>When does Series B funding happen?<\/h3>\n<p><span style=\"font-weight: 400\">Series B typically happens <\/span><b>3-18 months after Series A<\/b><span style=\"font-weight: 400\">.<\/span><\/p>\n<h3>How much equity do investors take at Series B?<\/h3>\n<p><span style=\"font-weight: 400\">Small business owners should expect to give away around <\/span><b>10-20% of their company equity (averaging 15%) <\/b><span style=\"font-weight: 400\">at this stage.<\/span><\/p>\n<h3>How does Series B differ from other forms of investment?<\/h3>\n<p><span style=\"font-weight: 400\">At this stage, investors would have expected you to be fully out of the newbie\/growth stages of business. You should have well-established&nbsp; foundations&nbsp; in place, as<strong> the aim of this next round is expansion<\/strong>. <\/span><\/p>\n<p><span style=\"font-weight: 400\">This could involve significant expansion of headcount, penetration of new markets and customers, or increasing your product range. All of this is with the intention of keeping the business fresh in the eyes of other investors and the consumer market. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Such expansion shows commitment from the company founders, proving that they: aim to keep the business running for the long term, shows they have their finger on the pulse, and can anticipate changes and trends that may prevent the business from going under. All of these are qualities investors love to see.<\/span><\/p>\n<h3>What are the benefits and drawbacks of Series B Funding?<\/h3>\n<p><span style=\"font-weight: 400\">With most companies failing within five years due to a lack of funding, <\/span><b>Series B funding can often prove to be a turning point<\/b><span style=\"font-weight: 400\"> in determining whether or not a business can truly stand the test of time.<\/span><\/p>\n<p><span style=\"font-weight: 400\">It provides <\/span><a href=\"https:\/\/startups.co.uk\/funding\/investors\/how-does-venture-funding-work\/\"><span style=\"font-weight: 400\"><strong>bridge financing<\/strong><\/span><\/a><span style=\"font-weight: 400\"> that will carry the business over from a stage of requiring financial support to stay afloat, to being able to survive on its own via profits as it has established solid footing in the industry.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Where Series C (and beyond) are harder to get, and more of a pipe dream for 80% of companies, Series B is a solid accomplishment and one that most well-known and successful businesses you can think of are currently operating at today.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A potential drawback when it comes to Series B is that there is potential to become complacent. Your financial needs have been satiated by the influx of investment, and business is running smoothly at this stage. This, for some founders &ndash; despite the ever-present stakeholder pressure &ndash; may find it easy to start coasting a little here. <\/span><\/p>\n<h3>Is it hard to get Series B funding?<\/h3>\n<p><b>Series B funding is undeniably harder to receive than Series A funding<\/b><span style=\"font-weight: 400\">, as there is a lot more to prove at this stage.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">You&rsquo;ll have to show significant, measurable growth from your previous round of funding, what you did with the money, and how it positively impacted your business. You&rsquo;ll need a coherent and credible business plan, laying out your next steps and how you intend to possibly double, treble, or quadruple the growth with the money from this round.<\/span><\/p>\n<p><span style=\"font-weight: 400\">You are unlikely to receive Series B funding if: growth to date has been minimal, your Series A funding was used ineffectively, or you are experiencing a downturn in sales and profit.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-what-is-series-c-funding\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>What is Series C Funding?<\/h2>\n<p><span style=\"font-weight: 400\">Series C funding refers to the <\/span><b>third (and usually &lsquo;final&rsquo;) official round<\/b><span style=\"font-weight: 400\"> of financing by venture capitalists or other investors.<\/span><\/p>\n<h3>When does Series C funding happen?<\/h3>\n<p><span style=\"font-weight: 400\">Series C can happen within a year of Series B, but is much more likely to happen two years after.<\/span><\/p>\n<h3>How much equity do investors take at Series C?<\/h3>\n<p><span style=\"font-weight: 400\">Small business owners should expect to give away around <\/span><b>10-20% of their company equity <\/b><span style=\"font-weight: 400\">at this stage, which is similar to Series B.<\/span><\/p>\n<h3>How does Series C differ from other forms of investment?<\/h3>\n<p><span style=\"font-weight: 400\">At this stage, investors expect you to be batting in the big leagues.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">This means you&rsquo;re demonstrating rapid scaling of your employees, your customers, and your systems &ndash; investors will want to see it all. With the potential to reach an <a href=\"https:\/\/startups.co.uk\/funding\/investors\/initial-public-offering\/\"><strong>Initial Public Offering (IPO)<\/strong><\/a> in sight at this stage, it&rsquo;s all hands on deck. <\/span><\/p>\n<p><span style=\"font-weight: 400\">This is a round where investors will have many more opinions and may actually want to become more hands-on than ever before. This is a stage not many companies reach, so, if you have, it signals exponential success for everyone.<\/span><\/p>\n<p><span style=\"font-weight: 400\">To achieve this kind of scaling, investors may be expecting you to do things such as buying other companies or other technologies to achieve that immediate uptick of people and resources needed for your large-scale operations. It might also mean launching new verticals, new product ranges and demonstrating optimisation of your traditional model.<\/span><\/p>\n<h3>What are the benefits and drawbacks of Series C Funding?<\/h3>\n<p><span style=\"font-weight: 400\">The biggest benefit of reaching Series C is that <\/span><b>your company will have a lot of eyes on it!<\/b><\/p>\n<p><span style=\"font-weight: 400\">You won&rsquo;t be at a loss for attention, whether that&rsquo;s options for financing, or attention from <\/span><b>the public and the media<\/b><span style=\"font-weight: 400\">. Your company will be considered a household name, an innovator or industry standard, and the one to watch.<\/span><\/p>\n<p><span style=\"font-weight: 400\">This popularity, however, can also become a potential drawback.<\/span><\/p>\n<p><span style=\"font-weight: 400\">This round is fast-paced, and there will be a lot of feedback and opinions flying about. The downside is that a founder or senior team can be drawn into a hundred different directions &ndash; and it will be up to the leadership to keep a level head, keep the stakeholders happy and the team on track.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A business courting Series C funding will be blooming already. Investors (particularly late-stage investors) may also be <\/span><b>aggressively pursuing you to claim more equity<\/b><span style=\"font-weight: 400\">. Now that the company is considered practically fool-proof, this is what investors see as the &lsquo;last official stage&rsquo; to invest at a good price to still gain a good return in future before it becomes too saturated or overly expensive after entering the public market.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">You may even need to ensure that you <a href=\"https:\/\/startups.co.uk\/funding\/issuing-shares-as-a-limited-company\/\"><strong>maintain the lion&rsquo;s share of your business<\/strong><\/a>, to avoid investors having too much power and using it to potentially oust you from your own company.&nbsp;&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">If not wholly prepared, business owners and founders may find the new pace hard to keep up with. This may damage the trajectory of the business at the very last hurdle.<\/span><\/p>\n<h3>Is it hard to get Series C funding?<\/h3>\n<p><span style=\"font-weight: 400\">It is very hard to get Series C funding.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Few companies reach Series B funding, and fewer still reach the Series C stage as they are unable to progress at a safe and steady pace. Even without failing, a business may not be particularly innovating, or exponentially growing at legendary levels.&nbsp;<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-beyond-series-c\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>Beyond Series C<\/h2>\n<p><span style=\"font-weight: 400\">Startups that are at the Series C stage of funding have all but proven to venture capital firms that they&rsquo;ll be a long-term success &ndash; with original backer&rsquo;s shares now having increased considerably in value.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Once you go beyond Series C, it typically means that the business has garnered a significant amount of money and success, and investors can now enjoy this to the fullest by holding or selling their shares as the business reaches the public equity market through an <a href=\"https:\/\/startups.co.uk\/funding\/investors\/initial-public-offering\/\"><strong>initial public offering (IPO)<\/strong><\/a>.<\/span>[\/vc_column_text]\n <\/p><div class=\"highlight-box\">\n <div class=\"highlight-box-decor\">\n <svg class=\"brush-stroke-svg brush-stroke-big\" preserveaspectratio=\"none\" viewbox=\"0 0 116 6\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\">\n <g stroke=\"none\" stroke-width=\"1\" fill=\"#ea0037\">\n <path d=\"M94.0845406,5.55784045 C93.4629887,5.58758734 92.7723755,5.58758734 92.2198849,5.64708111 C92.0127009,5.66195455 91.7824965,5.67682799 91.5062512,5.66195455 C89.5955547,5.58758734 87.6618377,5.5727139 85.7511411,5.67682799 C85.5669776,5.69170144 85.2446914,5.67682799 84.9914666,5.67682799 C82.8275451,5.66195455 80.6866442,5.63220767 78.4997023,5.67682799 C76.0825561,5.72144832 73.5963485,5.64708111 71.271284,5.73632176 C69.3605874,5.81068898 67.5649931,5.76606865 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86.2696559,4.04074932 86.2696559,4.0213508 Z\"><\/path>\n <\/g>\n <\/svg>\n <\/div>\n <div class=\"highlight-box-headline\">\n \n <span class=\"highlight-box-title\">\n How many companies make it beyond Series C? <\/span>\n <\/div>\n \n <div class=\"highlight-box-content\">\n <p><span style=\"font-weight: 400\">According to PitchBook,<\/span><b> only 3% of venture-backed companies in the last decade made it to public.<\/b><span style=\"font-weight: 400\">&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">With the average security requirements for a startup to go public averaging at &pound;100 million. Most startups never reach the option to do so.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, it still remains the ultimate end goal or dream for most company owners. <\/span><\/p>\n <\/div>\n <\/div>\n[\/vc_column][\/vc_row][vc_row][vc_column]<div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-conclusion\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>Conclusion<\/h2>\n<p><span style=\"font-weight: 400\">So there you have it: by now you should have a clear understanding of the funding rounds most companies aim to traverse through on their journey from small to big time.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">For a startup founder taking their very first steps, these funding rounds may feel intangibly distant. But, with a clear-sighted view of the expectations of each stage, you should feel better armed for planning a growth journey that could hopefully see you join the big leagues.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-faqs\"><\/div>\n<\/div>\n<div class=\"faq\">\n <span class=\"faq-title\">\n Frequently Asked Questions <\/span>\n <ul class=\"faq-list\">\n <li class=\"faq-item\">\n\n <span class=\"faq-question\">\n What is the main difference between Series A, B and C funding? <\/span>\n\n <div class=\"faq-answer\">\n Series A, B & C are simply terms for increasing levels of funding based on the stage of your business, therefore the main difference is the amount of funding available for each round, and the level of a growth a business would need to be at to progress to the next stage. <\/div>\n<\/li>\n\n\n<li class=\"faq-item\">\n\n <span class=\"faq-question\">\n What percentage of startups fail after Series A funding? <\/span>\n\n <div class=\"faq-answer\">\n According to Luisa Zhou.com, approximately 35% of startups will fail after Series A funding. <\/div>\n<\/li>\n\n\n<li class=\"faq-item\">\n\n <span class=\"faq-question\">\n What is the largest Series A funding ever? <\/span>\n\n <div class=\"faq-answer\">\n Articulate, a company that makes software to create online training apps, announced one of the largest series A rounds in history at a whopping $1.5 billion in 2021. <\/div>\n<\/li>\n\n\n <\/ul>\n <script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is the main difference between Series A, B and C funding?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Series A, B & C are simply terms for increasing levels of funding based on the stage of your business, therefore the main difference is the amount of funding available for each round, and the level of a growth a business would need to be at to progress to the next stage.\"}},{\"@type\":\"Question\",\"name\":\"What percentage of startups fail after Series A funding?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"According to Luisa Zhou.com, approximately 35% of startups will fail after Series A funding.\"}},{\"@type\":\"Question\",\"name\":\"What is the largest Series A funding ever?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Articulate, a company that makes software to create online training apps, announced one of the largest series A rounds in history at a whopping $1.5 billion in 2021.\"}}]}<\/script><\/div>\n[\/vc_column][\/vc_row]\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]If you&rsquo;re looking to launch your startup, or are in the early stages of establishing your business, then you may have a long-term vision for huge growth. And that type of growth needs investment. Despite all the overwhelming challenges of our economy, including the cost of living crisis creating a lack of access to capital, [&hellip;]<\/p>\n","protected":false},"author":91509,"featured_media":153081,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3051,2993],"tags":[4369],"acf":[],"yoast_head":"\n<title>Series Funding: A, B &amp; C rounds explained | Startups.co.uk<\/title>\n<meta name=\"description\" content=\"Interested in funding for your business? 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