Definition
Series B
Series B is the funding round a startup raises to scale a proven business model, typically larger than Series A.
By Series B, the company has demonstrated growth and unit economics, and the round funds aggressive expansion — new markets, larger teams and bigger marketing budgets. Existing investors often participate via their pro-rata rights, alongside new growth-stage funds.
Valuations at Series B are higher, and investors scrutinise metrics like ARR, CAC, LTV and burn. The cap table grows more complex with multiple preference stacks. Series B is followed by Series C and later rounds as the company keeps scaling toward an eventual exit.
Related terms
- Series ASeries A is a startup's first major priced venture round, raised once it has product-market fit and is ready to scale.
- Unit EconomicsUnit economics is the analysis of the revenue and costs associated with a single unit — typically one customer or one transaction.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.