What is a typical Series B valuation?

Typical Series B valuations range from $60M to $150M, but can go higher. The main drivers are your ARR, year-over-year growth rate, and market dynamics.

How much ARR do I need for a Series B?

Most companies raising a Series B have between $2M and $8M in annual recurring revenue (ARR). The key is less the absolute number and more the growth rate, which should ideally be 2.5x to 3x year-over-year.

How much dilution is standard in a Series B?

Expect 15-25% dilution. If you raise $20M on an $80M pre-money valuation ($100M post-money), you have sold 20% of your company.

What's the top reason startups fail to raise a Series B?

Companies fail when they can't show a repeatable and scalable go-to-market motion. Strong but chaotic growth that flattens out is a major red flag for investors.

Series B Funding: A Founder's Guide to the Metrics, Milestones, and Mindset

Series B isn't just a bigger Series A. It's a different game with new rules, new players, and a laser focus on metrics. Here's how to win it.

TL;DR: A Series B round is for scaling a proven business model, typically raising

5M-$50M at valuations of $60M-

50M+. Investors shift their focus from your founding story to hard metrics like ARR, growth rate, and unit economics. To succeed, you must demonstrate a predictable and repeatable engine for growth.

Key takeaways

Master your metrics: Know your ARR, growth rate, margins, and unit economics cold.
Prepare for intense due-diligence on your financials, team, and customers.
Target growth-stage VCs who specialize in scaling companies from $5M to $50M in revenue.
Build a financial model showing exactly how new capital drives predictable, efficient growth.
Understand that a Series B is a financial transaction, not just a bet on a dream.
Your goal is to prove you have a repeatable sales motion, not just initial traction.

A tactical guide to Series B funding. Learn the key metrics (ARR, growth), valuation math, and the mindset shift required to raise a successful growth round.

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