What Is Series A Funding?

Series A is the first priced equity round led by institutional venture capital firms (as opposed to earlier angel or seed rounds, which may use SAFEs or convertible notes). A Series A typically raises $5M–$20M at a pre-money valuation of $15M–$50M, though ranges vary by market and sector. The round is 'priced' — meaning a specific per-share price is set, a new class of preferred stock is created (Series A Preferred), and all outstanding SAFEs and convertible notes convert into equity at their negotiated terms. Series A investors receive preferred stock with specific rights: liquidation preference (typically 1× non-participating), anti-dilution protection, board seats, pro-rata rights for future rounds, and information rights. The lead investor negotiates the term sheet and often takes a board seat. Due diligence is significantly more rigorous than at the seed stage — investors examine financials, cap table, IP ownership, employment agreements, customer contracts, and legal compliance. The median time from seed to Series A is 18–24 months. Roughly 10–15% of seed-funded companies successfully raise a Series A.

A Series A is a defining inflection point for a startup. The legal complexity jumps significantly — a typical Series A involves 5+ legal documents (stock purchase agreement, investor rights agreement, voting agreement, certificate of incorporation amendment, and more). Founders who go into a Series A without experienced legal counsel often accept terms they don't fully understand, particularly around liquidation preferences, anti-dilution provisions, and board control. A startup attorney and a financial advisor working together can help you negotiate from strength and avoid costly mistakes.