Series A Funding or Series B Funding: Which funding is usually more preferrable?

  • Series A Funding
  • Series B Funding
Please select one to answer and see the result

Answers

Series A Funding - 10Series B Funding - 12
  • Anonymous . 3+ yrs. ago
Series A Funding because by Series B, the company is relatively stable and more proven. Series A financing s more necessary for growth.
  • Anonymous . 3+ yrs. ago
Without "A" there is no "B"
  • Anonymous . 3+ yrs. ago
First to get paid back, largest return (and risk) on investment
  • Anonymous . 3+ yrs. ago
For as much as B is important remember because you have your "foundation" It is easier to come by based on loans, investors etc.

Having a large lot in the A area allows you to make sure your "foundation" is as strong as possible, maybe even allowing some of the funds from A to move into the B area. Or as I said making your "foundation" that much stronger so B funds are even easier to procure.
  • Anonymous . 3+ yrs. ago
vote of confidence by savvy investors. May lead to a Series B.
  • Anonymous . 3+ yrs. ago
Allow you to have influence on early stage development and greater rewards at IPO or sale of company.
  • Anonymous . 3+ yrs. ago
Without it, you are not able to get to B. Also, if you grab strong group of investors, the B will come much easier with much smaller loss of equity.
  • Anonymous . 3+ yrs. ago
Series A Funding is more preferable because it establishes capital to grow a business. It is the foundation of the investment portion and the beginning of an accelerated growth opportunity. Through a strong management team and marketing strategy, this capital can sprout success.
  • Anonymous . 3+ yrs. ago
first in in line to recoup investiment
  • Anonymous . 3+ yrs. ago
It's the initial large sum of investment that you are going to take. A series B means you need more money and will give up more of your company.
  • Anonymous . 3+ yrs. ago
Easier to raise money with less % of company given away
  • Anonymous . 3+ yrs. ago
BECAUSE THATS THE ANSWER
  • Anonymous . 3+ yrs. ago
more convenient b/c research already done. Less equity to give away
  • Anonymous . 3+ yrs. ago
easier to obtain
  • Anonymous . 3+ yrs. ago
because it is easier to obtain because you have garnered a vetted entrepreneur status
  • Anonymous . 3+ yrs. ago
AT this point profit is realized and funding can take place and is more preferable now that profits are shown. Easy to raise money when profits are shown.
  • Anonymous . 3+ yrs. ago
At this point the value of the company is higher and you are giving away less ownership
  • Anonymous . 3+ yrs. ago
easier to procure
  • Anonymous . 3+ yrs. ago
Vetted
  • Anonymous . 3+ yrs. ago
you can give away too much of your company with Series A funding.
  • Anonymous . 3+ yrs. ago
Because the business has survived!
  • Anonymous . 3+ yrs. ago
Series A funding requires you to give approx. 20%-50% of your new company to investors. In Series B, you typically give about 20%. Given that you exchange less of the company for a large investment (typically $5 million-$15 million,) Series B becomes the perferrable option.

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