A Series B round comes after pre-seed, seed, and Series A rounds of funding. Companies at this stage have their products or services being sold on the market and are looking to bring in net profits. Funding can come from private equity, venture capital firms, crowdfunding equity, and credit investments. The estimated capital raised during this round is between $7 million and $10 million, and that number can vary. This funding round is generally for companies that has a valuation between $30 to $60 million. It is expected that companies will utilize funds from this round to expand their businesses development in areas such as sales, advertising, technology, customer service and support, and talent.
During this stage, a company is fairly well-established so investors looking to get involved generally need to invest more than Series A investors. Oftentimes, investors from a Series A round will also invest in the Series B round. Investors usually receive convertible preferred stock in the company.