Series A round

How it works

Series A is the most competitive stage in venture: hundreds of seed-stage companies compete for funding from a small set of Series A firms (Sequoia, a16z, Benchmark, Greylock, Accel, etc.). The bar has risen — most Series As require $1M+ ARR or a strong leading indicator. Round sizes are $5M–$20M, and the lead typically takes a board seat and 15–25% of the company.

Related terms

• Seed round
  A seed round is the first priced (or SAFE) financing of a startup, typically $1M–$5M raised to find product-market fit.
• Term sheet
  A term sheet is a non-binding document outlining the key terms of a proposed investment — valuation, amount, board seats, liquidation preference, anti-dilution, and other rights.
• Dilution
  Dilution is the reduction in an existing shareholder's ownership percentage that happens when a company issues new shares — typically when raising a new round.