Series A
The first major institutional funding round, typically $5M-$20M, for companies with proven traction.
Definition
Series A is usually the first large institutional round, raising $5M to $20M from venture capital firms. Companies at this stage have demonstrated product-market fit, meaningful revenue or user growth, and a clear path to scaling. Series A investors receive Series A Preferred Stock with specific rights, including liquidation preferences and board seats.
Why it matters
The Series A is a major validation event. It typically raises your 409A valuation significantly, meaning your existing options become more valuable on paper. New hires after Series A get higher strike prices and usually smaller grants.
Example
A SaaS company with $1.5M ARR raises a $12M Series A at a $48M post-money valuation. Benchmark Capital leads and takes a board seat. The 409A goes from $0.30 to $1.50/share.