Series G- Not Gatorade...Private Company Funding Explained

Sponsored by: [Moving is a hassle, and a lot goes into a home besides the paperwork. Rentberry has created an all-in-one solution helping bring the rental experience digitally.]( [Read More Below]( 🎥 The Morning Meetup 👋 Hey Boardroom Members, You might have read somewhere that some big Unicorn (such as Uber back in the day) was having its Series G funding round, and a huge institution such as Saudi Arabia’s Public Investment Fund was taking a large chunk! But what does it all mean? And how do private companies get this funding? It works like this–a funding round is any time money is raised from one or more investors for a business. Each round is given a letter, and each round is sometimes called a series. Each series is given a letter because each round follows another and the letter identifies which number or round they’re on. So, for example, Series G would be the 7th round of funding a company has had. The type of funding round will also depend on the type of shares being offered (e.g., common or preferred). However, thanks to CROWDFUNDING, these days almost anyone can invest at any stage–not just the elite angel investors or venture capitalists! So let’s take a closer look to understand these rounds: Seed Rounds When a company is still at its initial idea stage, this is when the “pre-seed” fundraising occurs.The company is simply trying to get its operations up and running. This round usually includes a large portion of funding from friends and family. Once the business gets its footing, it may seek outside investment in the form of Seed/Angel funding. Usually the founder(s) should have a proof of concept or prototype, and indications that there is demand for the product or service being offered. The company likely needs this investment to support the business as--at this early stage--it probably won’t be generating enough cash flow to cover its day-to-day operating costs. Usually this round involves smaller amounts of money in exchange for equity or debt, because the company will have little or no track record and the risk is higher than a more established company in later stages. This is where angel investors (high net-worth individuals that invest their own money) may step in. Now with the JOBS Act legislation going live in 2016- we see Reg CF- aka: Regulation Crowdfunding as a bridge from these pre-seed and seed rounds to the Series A round. Series A–MONETIZE the Business The Series A round is the first round of funding after the Seed/Angel & Reg CF rounds. The company will still be in its early stages, with still a lot to prove and thus this stage is still very high risk. However, it will have some track record to point to (such as established users, consistent revenues, etc.). If a startup can raise a successful Series A round, this usually points towards strong momentum in the business. At this stage VCs may become interested alongside angel investors. VCs and other institutional investors often manage and invest other peoples’ money, so they usually invest only in companies with proven track records to reduce their risk. Investors will be particularly interested in how the company is producing revenue or perhaps producing significant user growth. Series A- is a private round for accredited investors and larger firms. If a company files a Series A+ or Reg A+ it allows retail investors to invest in these early stages with significantly less capital than Angels or VCs may typically supply. Series B—Increase REACH The primary goal of the Series B round is to grow the company past its development stage and increase its reach. The company should have a higher valuation than before, with lower risk for investors as now the business should have a more solid track record. In this series, the cost to invest will be higher. This is an exciting stage for investors as it should represent a rapid growth stage for the company. These signs of growth should be evidenced by increased revenue and/or users, entry into new markets, or some other performance metric. Series C–Time to SCALE! The Series C round is usually undertaken by the company when it is ready for growth because it has demonstrated success. Scaling is the goal and is where the big money can be made! Scaling strategies could include activities to increase market share, developing new products or services, or acquiring those of competitors. The company needs increased resources to fund these ambitious goals. This is also an exciting time for investors to come in–as well as lower risk than previous stages although also more expensive as the company has proven its success. Hedge funds and other large investment firms may jump in at this point. Future Fundraising Although we only touched on the most common Series A-C stages, there can be many more rounds of raising and offerings before a company decides to go public to facilitate growth. Uber made it to a Series G, and it took 9 years before it went public! Uber’s path was fascinating and complex, filled with numerous other unattributed private offerings and secondary offerings to private organizations and individuals in between. Sponsored By: You don’t need me to tell you that the housing and rental markets are absolutely nuts right now! It’s all the more difficult when the process of finding a home feels like a mad dash with little clarity or transparency. [Rentberry]( seeks to change all that by providing renters and buyers a digital platform to connect with landlords and sellers, streamlining the process for everyone involved. According to the company, Rentberry is the first real estate platform that offers a “fully digital rental journey.” All standard rental tasks (tenant screening, signing documents, requesting maintenance service while under contract, etc.) are not only automated through the[Rentberry]( app, but are contact-free (a huge PLUS as it relates to Covid). Not only that, but Rentberry allows lessees to bid on rent– it's like Ebay but for apartments! Potential tenants can submit custom offers for monthly rent and security deposits, and bid against others just like Ebay. Besides leasing, Rentberry offers a huge database of properties for sale–leveraging its automated processing skills. Rentberry’s London offerings Rentberry’s reach is quite extensive– it has a presence in some of the best cities in the world (including Paris. Brussels, Budapest, Cape Town to name a few) and boasts a foothold in over 50 different countries while continuing to expand its reach. This is an exciting time to become a major player and disrupt the traditional clunky real estate market process! When AirBNB did its Series A it was valued at $70million with $7.2million in cash raised. At its Seed it raised $20 k at a $2.5m valuation. The company now has a market capitalization of $73 billion. The Residential sector is enormous and Rentberry is set on capturing its piece of the pie. To understand more about how Rentberry operates, please see the video above. If your interest in this hot and dynamic market niche is piqued, check out Rentberry [here!]( *See Disclaimer Below [Learn more Now]( 🚒 Hot Links 🔥 +Discover more about private companies [here](. With Crunchbase you can filter by funding round, money raised, or announced date for hundreds of companies. +Learn more about not only funding rounds but funding sources [here]( +Find out how long it can take to complete a funding round, and how much money do start ups typically raise [here]( Tweet of the Day 🐥 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? Email us at Support@ragingbull.com © Copyright 2022, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( DISCLAIMER: To more fully understand RagingBull.com, LLC’s issuer-paid advertisement disclaimer and disclosure policy located at . Issuer-paid advertisement.:This Issuer has paid RagingBull.com, LLC (“Raging Bull”) $10,000 in cash to run advertisements enhancing public awareness of the company. Raging Bull is currently invested in the company. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. 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