Insider Look: Key Trends in Series B Funding & Growth Strategies

Name: Insider Look: Key Trends in Series B Funding & Growth Strategies
Uploaded: 2023-10-22T15:05:34+00:00
Duration: 50 s
Channel: Jason M. Lemkin
Description: Series B rounds now average $10 million to $40 million for companies with $6 million to $12 million in annual revenue. More than half are growing slower…

22 Oct 2023 · 1 min

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Series B rounds now average $10 million to $40 million for companies with $6 million to $12 million in annual revenue. More than half are growing slower than 2× year-over-year, a shift from previous years. Companies are raising Series B later in their lifecycle, at higher revenue but with less explosive growth.

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You can see that most of the Series B rounds were very roughly in the $10 to $40 million range, and valuations were again very roughly between $80 to $200 million. Now, looking at ARR levels at the Series B companies, you can see that most companies were around $6 to $12 million in ARR. And interestingly, more than half of them were growing at less than 2x. In previous years, that proportion was lower. So it's a bit similar to what we saw previously for the Series A's. The rounds tend to happen a little bit later at a little bit more ARR, but with a little bit less growth.