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DEMAND fINDER

Series A, B, C and D explained

Stages of Investing

We often find people slightly confused as to the various stages of investing, so here’s a really simple quick definition to help.

Series A

Series A funding represents the first venture capital funding for a startup. It follows seed capital, the initial money put in by the founders/investors, and precedes the Series B funding round. “Series A” itself refers to the class of preferred stock sold.

Successfully gaining Series A funding demonstrates that a minimum viable product (MVP) exists and the investment normally provides the start-up with a 2 year cash flow, allowing the start-up to further develop the products and execute the go-to-market plan. 

What typically happens after the 2 years? 

Series B-D

Series B funding is the second round of funding, including private equity investors and venture capitalists. Successive rounds of financing a business are consecutively termed Series A, Series B, and Series C financing.

Private equity firms typically invest in Series C, where the company has executed the Go-to-market plan in Series A, further established their market position in Series B and is ready to scale. Series C funding is typically £10-£100m. 

Series D investments are typically above £100m.

How we help

We support investors with Series A investment decision making, both pre and post investment, specifically for B2B.   

Pre-investment

As part of a successful decision making process, investors need to be able to have confidence in the go-to-market plan and the resources that execute it. We investigate this for them by:  

  1. Interviewing senior leaders within the target sales and marketing team and assess credibility for the roles
  2. Reviewing the go-to-market plans in details, identifying gaps that might exist

 

We provide feedback to potential investors via a discussion with supporting slides, rather than a 40 page document! 

***Having a solid minimal viable product (MVP) isn’t enough for Series A investors.**** They need to know their target company can execute credible go-to-market plans.  

Post investment

Where investments go ahead and where gaps were identified, we are available to support the execution of the go-to-market plan. This includes: 

  1. Working through the go-to-market plan with the operational team, from a strategy and tactical planning perspective
  2. Hands-on support for both sales and marketing ‘director’ roles using a tested framework to develop leadership and practical capabilities. Being available at the end of the phone (Mentoring key roles)
  3. CRM and marketing automation design and implementation support 
  4. Sales training, covering sales management, process and methodology
  5. Marketing training, covering differentiation strategy, market positioning, ideal customer profiling and target marketing campaign design.

 

The key is to help the startup balance lead volume and sales conversion rate, in a way that scales.  

If growth is still a priority and you want to make a start, let’s set up a time to talk. 

Focus

Build deeper, more engaged relationships

(c) 2020 Demand Finder Limited, 1 Knights Court Archers Way, Battlefield Enterprise Park, Shrewsbury, United Kingdom, SY1 3GA

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