Series A financing
It is the first round of financing given to a new business once seed capital has already been provided. This is when external investors are given company ownership for the first time. It is also known as round A financing. The investors involved in the Series A round come from more traditional venture capital firms. Series A preferred stock is often convertible into common stock in certain cases such as an Initial public offering (IPO) or the sale of the company.
Series B financing
It is the second round of financing for a business through any type of investment including private equity investors and venture capitalists. Series B rounds are all about taking businesses to the next level, past the development stage Investor’s help start-ups get there by expanding market reach. Series B appears similar to Series A in terms of processes and key players.