The Series A is where classic venture capital lives. A partner at an institutional firm leads a priced round, takes a board seat, buys ~15–25% of the company and commits to helping build it for the next 5–10 years. Seed money buys an option on a team. Series A money buys a business model in its earliest repeatable form, and the Series B buys proof that the model scales. Most of a venture fund's eventual returns come from decisions made at these two stages: which companies to lead, at what ownership, and where to concentrate follow-on capital.
What the study covers
- 1Overview: what each round is meant to prove
- 2Mechanics
- 3Key numbers
- 4Landmark Series A and B deals
- 5Pitfalls
- 6How an expert thinks about it
- 7Glossary
- 8Related sections
Technical exhibits
Worked examples, checklists and case studies included with this study.
Series a Round and Waterfall Worked Example
The Lumen Labs company from section 01 raising a $12m Series A: pool shuffle, pro rata, liquidation waterfall at six exit values, and the lead's path to fund-level returns (computed in Python)
Series a and B Readiness and Diligence Checklist
What leads check before an A or B: metrics, customer calls, cohorts, go-to-market and legal