Series A round
A series A is the name typically given to a company's first significant
Series A rounds are traditionally a critical stage in the funding of new companies. Series A investors typically purchase 10% to 30% of the company.[1] The capital raised during a series A is usually intended to capitalize the company for 6 months to 2 years as it develops its products, performs initial marketing and branding, hires its initial employees, and otherwise undertakes early stage business operations.[2]
It may be followed by more rounds (Series B, Series C, etc).
Sources of capital
Because there are no public exchanges listing their securities, private companies meet
Structure
Smaller investment amounts are usually not worth the legal and financial expense, the burden on a company of adjusting its
In the United States, Series A preferred stock is the first round of stock offered during the seed or early stage round by a portfolio company to the venture capital investor. Series A preferred stock is often convertible into common stock in certain cases such as an initial public offering (IPO) or the sale of the company.
Series A rounds in the United States venture capital community, particularly in Silicon Valley, are widely reported in business press,
In Britain, Series A equity funding is typically structured by the issuance of preference shares, redeemable shares, redeemable preference shares, ordinary shares (possibly split into different classes, for instance A ordinary shares and B ordinary shares), or some combination thereof.
See also
References
- ^ Ben Narasin. "Series A Is The New Series B". TechCrunch. AOL.
- ^ "Why the Series A Crunch Might Be a Good Thing". Inc.com.
- ^ Lora Kolodny. "Startups Advertising to Raise Funding More Than VC Firms Are, Study Says". WSJ.
- ^ "SeedInvest Raises Series A On Its Own Crowdfunding Platform". TechCrunch. Retrieved 24 December 2014.
