Series B

Category: Funding Stages & Instruments · Level: Mid · Also called: B round

TL;DR

The growth round raised to scale a proven business model, typically $20M–$50M+ on $100M–$300M post-money valuations.

Series B funds scaling, not searching. By the time of a Series B raise, the company is expected to have a proven GTM motion, predictable unit economics, and a market large enough to support a venture-scale outcome. Round sizes vary widely with sector heat, but $20M–$50M is the typical band.

Series B investors expect a multi-year operating plan, audited financials or audit-ready ones, and a senior leadership team with at least the heads of GTM, product, and engineering in place.

Worked example

At $7M ARR growing 3×, a $35M Series B at $115M pre / $150M post. New lead takes 23%, joins the board, and brings introductions to enterprise logos — capital funds first international expansion and a 4-person platform team.

Common pitfalls

  • Raising Series B before unit economics are proven.
  • Hiring senior executives reactively after the round closes.
  • Underspecifying which growth lever the round funds.

When this shows up in a pitch deck

Series B decks lead with revenue, retention, growth efficiency, and the specific scaling thesis the round is funding.

See Series B in context

Series B shows up most often in these scoring rubrics and investor profiles — jump straight to who cares about it and how to pitch them.

For investor types

Related terms

  • Series A — The first major priced round, typically $8M–$20M raised on the strength of early product-market fit and a repeatable go-to-market motion.
  • Series C — A late-stage growth round used to accelerate scale, expand internationally, or prepare for an IPO, typically $50M–$200M.
  • Burn Multiple — Net new ARR divided by net burn — the dollars of capital consumed per dollar of new ARR generated.
  • Rule of 40 — A SaaS health benchmark: revenue growth rate plus profit margin should sum to at least 40%.
  • Magic Number — A SaaS sales-efficiency ratio: net new ARR divided by sales and marketing spend in the prior period.

Use this in your next pitch deck

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