Within the context of financing a new venture, Series A funding refers to the sourcing of post-seed capital from external investors. Typically venture capital funds generate this capital, though companies may make shares available to angel investors as well. The series A round is distinctive in that it frequently represents the first offer of ownership-level shares.
Capital raised during a series A round traditionally goes toward product scaling and the development of a solid business model. This may involve validating the product in a particular market, establishing a user or customer base, or reaching a specified milestone. In the current economy, the average project typically requires series A investments of between $7 million and $15 million. Specific valuation is based on progress achieved during the seed capital stage and the perceived quality of leadership within the company.