An essay by John Melonakos
Intent of Rounds of Funding
Marc Andreessen likes to microblog on twitter and he often has fascinating posts. In response to a recent one of these microblogs, Fred Wilson communicated clearly in a single tweet the intent of the first three rounds of funding:
@pmarca I assume Seed is to build product and get to PMF, Srs A is to build business, Srs B is to scale business
— Fred Wilson (@fredwilson) June 14, 2014
- Seed round – to build product and get to product-market fit
- Series A – to build business
- Series B – to scale business
That’s a good recipe to follow for startups pursuing the path of raising investor money.
What are your thoughts on the purpose of the different rounds of funding?