Startups · Entrepreneurship

How many series of funding are there?

alok verma Software Engineer at Software Company

September 23rd, 2016

I keep hearing news about xyz startup raised $$ million in Series A or B funding. Are there any industry standards for number of series? (Completed by Kishore)

Rochelle Kopp Japanese business culture expert and cross-cultural communications specialist

September 23rd, 2016

Here's a relevant quote from our book Valley Speak: Deciphering the Jargon of Silicon Valley

“Back in the early 2000s we worked with several companies who had many, many rounds of financings. I remember one that went through Series I.” - Ken Maready, Founding Partner, Maready, PLLC

Neil Gordon Board Member, Corporate Finance Advisor and Strategy Consultant

September 24th, 2016

The letter designations refer to the various series of Preferred Stock that's issued with each round, with the first designated "Series A," etc. There is no standard, as such... it depends on how much added capital a particular business needs, whether that capital might come from debt rather than a next equity round, the timing of an exit, and other factors.

One of the "other" factors is the size of individual rounds, everything else being equal, larger rounds result in fewer rounds, and vice versa.