Series A financing refers to an investment in a privately-held, start-up company after it has shown progress in building its business model. And demonstrates the potential to grow and generate revenue. 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 other long-term goals.
In exchange for their investment, typical Series A investors will receive common or preferred stock of the company. Or deferred stock, or deferred debt, or some combination of those. Firstly, the entire investment is premised on the valuation of the company. Secondly, it’s about how much it is worth, and how that valuation may change over time. Most Series A investors are looking for significant returns on their money. With 200% to 300% not uncommon objectives over a multi-year period. Lastly, to know more about Funding, contact Entrepreneurs Collective and become a free member today.« Back to Glossary Index