Series B
A growth-stage round, typically $15M-$50M, to scale a company with strong unit economics.
Definition
Series B funding typically ranges from $15M to $50M and is raised by companies that have proven their business model and need capital to scale aggressively. At this stage, companies usually have significant revenue, a growing team, and clear unit economics. Series B investors receive preferred stock with rights that stack on top of earlier rounds.
Why it matters
By Series B, the company is de-risked significantly. Your 409A price rises again, but the odds of your equity being worth something improve. Late joiners at Series B get smaller grants but at a company with a clearer path to a liquidity event.
Example
A company at $8M ARR raises a $30M Series B at a $150M post-money valuation. The 409A goes from $1.50 to $6/share. An early employee who joined at seed sees their paper value multiply 20x.