Series B funding: what to expect and tips to prepare

If your business is ready to scale, you might be considering Series B funding. This round is designed to help startups grow faster, with investment for expansion into new markets, expanding your customer base, hiring key staff or investing in technology and marketing.

But attracting investors at Series B requires a proactive approach and careful preparation. Not to mention, a clear strategy and robust financials.

In this guide, we reveal everything you need to know about the process including what investors expect, where you can find them and alternatives to consider if it’s not the right fit.

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What is Series B funding?

Series B funding is the second major round of venture capital financing that a startup business raises, following its Series A funding. Series B rounds in the UK typically range from £10 million to over £50 million. ¹

At this stage, a business must have:

• A proven product or service
• A strong and growing customer base
• Reliable revenue streams
• A clear path to profitability.

As well as this, investors now want to see how a company can scale efficiently.

Typically, Series B funding is used for:

• Product development and diversification
• Expansion into new markets or regions
• Large-scale marketing and sales
• Hiring leadership and operational staff
• Technology or infrastructure upgrades

What's the difference between Series A and Series B funding?

Compared with Series A funding, Series B involves larger investments and therefore often higher expectations. Your startup’s valuation is now based on performance and growth potential, not just an idea.

This is why the process becomes more detailed and covers a range of factors including compliance, IP protection and financial audits.

Here’s a quick comparison:

Feature	Series A	Series B
Purpose	Prove product-market fit and initial growth	Scale operations, expand markets and refine business model
Typical funding	£2–£10 million²	£10–£50+ million¹
Investor type	Early-stage venture capitalists (VC)	Institutional investors, larger VC firms
Focus	Growth potential	Demonstrated performance, scalability and efficiency

Put simply, Series A proves your business can grow while Series B proves it can scale sustainably.

💡 Read more about startup funding rounds

When’s the right time to raise Series B funding?

As with any investment opportunity, timing is key. Typically though, startups consider Series B when:

• Revenue is consistent and growing
• Key operational processes are working and in place
• The team has capacity to scale (and quickly)
• There is clear evidence of market demand and product-market fit

Rushing into any investment too early can result in challenges, but equally, waiting too long can slow down opportunity.

What investors look for in Series B funding

To secure Series B investment, you’ll likely need to evidence both strategy and traction. This includes:

• Revenue growth: Consistent and measurable growth over multiple quarters.
• Market opportunity: Proof that your industry can support your long-term expansion.
• Customer metrics: Retention rates, customer acquisition cost (CAC) and lifetime value (LTV).
• Scalability: Evidence that your business model can grow without proportional cost increases.
• Strong leadership: A capable team that can handle pressures of growth.
• Use of funds: A detailed and credible plan for how investment will drive measurable outcomes.

How to prepare for Series B funding

Investors want to see that your business is ready for quick growth, both operationally and financially. To evidence this, follow these steps:

1. Strengthen your financials

Ensure your financial records are accurate and up to date. Investors typically review revenue, margins, cash flow, historical financial performance and projections for the next 12-24 months. Audited statements aren’t always required but can help to build credibility.

2. Create a compelling pitch deck

A Series B pitch deck should include:

• Business overview and growth story
• Market opportunity and competitive landscape
• Financial performance and projections
• Key metrics: CAC, LTV, churn and MRR (Monthly Recurring Revenue) and ARR (Annual Recurring Revenue)
• Use of funds and expected outcomes
• Team and leadership capabilities

While ambition is essential, alone it won’t be enough. Series B requires data-driven stories.

3. Prepare key documents

Investors may request:

• Corporate governance documents
• Shareholder agreements and equity structures
• IP and legal compliance records
• Operational policies and HR documentation

Having these ready can streamline due diligence and show operational readiness.

Where to find Series B investors

At this stage, you’ll typically attract:

• Venture capital firms specialising in growth-stage startups
• Institutional investors seeking higher capital deployment
• Strategic investors who can provide industry connections or operational support

Networking at industry events and online investor platforms can help you to connect with the right investors.

💡 Read more about approaching VCs and investors

Alternatives to Series B funding

Series B isn’t the only option, and it’s not right for everyone. Depending on your business, you could consider:

• Debt financing: Loans or credit to fund expansion without diluting equity
• Revenue-based financing: Where investors are repaid based on revenue performance
• Strategic partnerships: Joint ventures to access new markets or capabilities
• Crowdfunding: Raising funds from a large number of small investors, often with less control dilution

Common challenges during Series B and how to overcome them

While Series B funding does open doors for growth, it also comes with challenges that startups must navigate carefully. However, being aware of these can help to improve your chances of securing investment and scaling successfully.

Balancing growth with capacity

At this stage, expanding too fast can put strain on your existing team and systems.

What’s more, hiring too quickly without appropriate processes in place can lead to inefficiencies or mistakes. To avoid this, focus on building scalable operations while ensuring your leadership team can handle the increased load and complexity.

Meeting investor expectations

Series B investors expect tangible results including strong revenue growth and clear metrics. Falling short can impact your credibility. This is why transparent reporting and realistic KPIs are essential. You should also communicate any challenges openly with your investors.

Managing cash flow

Even with investment, cash flow management issues can still arise. Unexpected costs can occur which highlights the importance of careful forecasting, budgeting and contingency planning.

Maintaining company culture

As your team grows and new investors join, the original company culture can be diluted. It’s important to keep your vision and values visible, especially during onboarding and internal communications. This will ensure your company’s identity is preserved throughout expansion.

Preparing for future funding rounds

Series B funding is often used as a stepping stone to Series C or IPO (Initial Public Offering). If this is in your plan, then building a track record of strong financial and operational performance now will only make future rounds smoother. Be sure to keep your documents and reporting rigorous from the start.

By anticipating these challenges, you’ll not only improve your Series B funding prospects but also strengthen the foundations for long-term growth.

Average Series B funding timeline

The whole process can take several months from preparation to completion. Typically, it will involve the following stages:

1. Pre-round planning: An opportunity to align your growth plan and financial model
2. Investor outreach: Pitching to VCs and strategic investors
3. Term sheet negotiation: Agreeing valuation and equity structure
4. Due diligence: Investors examine your business in detail including its operations, finances and compliance
5. Closing: Final agreement signed and funds transferred

Level up with Wise Business

While you’re researching funding options for your business, it’s also worth making sure you’re set up with the right business account. That’s where Wise Businesscan help.

Once approved for an account, you can hold and exchange 40+ currencies at once, and send fast, secure payments to 140+ countries. Not to mention, get account details to get paid in 8+ currencies like a local.

Plus, whenever you need to send, spend or exchange foreign currencies, you’ll benefit from the mid-market exchange rate, with low, transparent fees.

You’ll also benefit from these features with Wise Business:

• No ongoing fees, minimum balance requirements or foreign transaction fees
• Debit and expense cards for you and your team, which you can use in 40+ currencies
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise batch payments feature
• Integrate with your favourite cloud accounting solutions
• Use the powerful Wise API for automation and streamlining workflow
• Take advantage of Wise Interest to make your funds work harder when you’re not using them Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

With a truly global account, you’ll be set to grow your business worldwide.

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Sources used:

1. Seed Legals - Series B Funding Guide
2. Harper James - Funding Stages A Guide

Sources last checked on date: 28-Oct-2025