All terms
Fundraising
Series B
The second priced equity round, usually raised at $8-20M ARR with a $15-40M round size. Growth-focused: hiring engine, second product line, category leadership.
By Maya Okonkwo · Last updated July 22, 2026
In plain English
The round where the question shifts from 'does this work?' to 'can this be huge?' Bar: >100% YoY growth, >120% NRR, disciplined CAC, and a real competitive moat forming.
Example
US 2026 Series B median: $25M raised at $150M post-money on ~$12M ARR, growing 2x YoY, NRR 115-125%.
Why it matters
Series B is where a company either becomes a category leader or gets stuck in the middle. The metrics gates are stricter (CAC payback < 15 months, magic number > 0.7). Failure mode: raising B on hype, missing the plan, becoming a Series-C zombie.
Common mistakes
- Raising B before Series-A metrics are actually clean — cracks in NRR + CAC payback surface in board meetings within 6 months
- Hiring the exec team all at once — hire-then-fire cycles crater culture
- Assuming board dynamics are the same as Series A — B boards are more principal + less patient