How to Raise Series B Funding?

A Series B round includes different aspects for the raising company.

Finance Projections

A company at this stage needs to have achieved several milestones, often relating to key performance indicators or revenue targets. However, investors may ask for projections of future revenue plans to assess the company’s health.

Commercialization Progress

Investors look to minimize their market risk at this stage, meaning a Series B company needs to have a solid grip on the niche it is operating in. Thus, the company has to show how it will commercialize its dominance in the market to successfully raise the round.

Relationship Building

A Series B raise will typically include several investors that have participated in previous funding rounds. For a raising company, it is, therefore, paramount to maintain good relations with its original investors since those can procure new relationships and potential sources of funding for a Series B.

Growth Focus

Since Series B focuses on scaling a company’s existing business, the raising company needs to show a capacity for profitable growth. Roughly speaking, a company has to demonstrate that it can scale its business and maintain or even increase its profitability in the process.

Pitch Attractiveness

Finally, a Series B raise has to tell a compelling story to potential investors. The communication of a plan matters as much as the data underpinning how the company aspires to achieve its goals.