<ul><li>Series A financing follows initial seed capital, generally bringing in investments in the tens of millions of dollars.</li><li>A start-up will generally draw this level of financing only after it has demonstrated a viable business model with strong growth potential.</li><li>Series A financing enables a start-up that has potential but lacks needed cash to expand its operations through hiring, purchasing inventory and equipment, and pursuing long-term goals.</li><li>Series A financiers typically gain a large or controlling interest in the start-up company in exchange for their investment and the risk they are taking.</li></ul>

Series A Financing

<ul><li>Seed capital is the money raised to begin developing an idea for a business or a new product.</li><li>This funding generally covers only the costs of creating a proposal.</li><li>After securing seed financing, startups may approach venture capitalists to obtain additional financing.</li><li>Some seed capital may come from angel investors—professional investors who have a high-net-worth.</li></ul>

Seed Funding

<ul><li>Series B financing is the second round of funding for a company that has met certain milestones and is past the initial startup stage.</li><li>Series B investors usually pay a higher share price for investing in the company than Series A investors.</li><li>Series B investors typically prefer convertible preferred stock vs. common stock due to the anti-dilution feature of preferred stock.</li><li>Series B funding can come from private equity investors, venture capitalists, crowdfunded equity, and credit investments.</li></ul>

Series B Funding 

<ul><li>Businesses that make it to Series C funding sessions are already quite successful.</li><li>Companies look for additional funding to help them develop new products, expand into new markets, or even acquire other companies</li><li>Cycle C funding is focused on scaling the company, growing as quickly and as successfully as possible.</li></ul>

Series C Funding 

<ul><li>Bootstrapping is founding and running a company using only personal finances or operating revenue.</li><li>This form of financing allows the entrepreneur to maintain more control, but it also can increase financial strain.</li></ul>

What Is Bootstrapping?

Series A, B, and C funding rounds are important opportunities for new companies to gain crucial financial support.