Series A

Series A Raise forms part of the process of raising capital by a startup business. This is considered to be the second part of the startup finance process but the first stage of venture capital financing.  Much like seed financing, series A funding is a form of equity-based financing, which means that you can obtain the capital you need from investors through the sale of company shares. However, startups will often issue preferred shares which means that owners will not have any voting rights.

In contrast, companies might issue convertible preferred shares whereby investors have the option to convert their preferred shares into common stock at some point in the future. This form of financing is used to help your company grow. Some of the most common goals during this round are to reach specific milestones in the development of products and attract new talent. At this point, a company has to continue to grow as a way of attracting more investors who will provide financing in later rounds of financing.

At this stage, the most prominent investors are venture capital firms that specialise in providing investment to early-stage companies. The capital is provided in line with certain rules as it is provided to those companies that are known to generate revenue but are still at the stage where they are not generating any profits but are likely to in the future.