Kitsap County: If You’re reading this article as you begin to raise money or after you’ve raised a seed round. It’s useful for you to understand the total picture of what each round of capital means. Let’s have a detailed analysis of each one of them.
SEED = SIZZLE. This is the first outside money that you raise. The order of magnitude is $100,000—$250,000. Sources include friends and family as well as angels. At this point, you’re selling on dreams, fantasies, and delusions—in other words, this round is about sizzle.
SERIES A = STEAK. In this round, venture capitalists enter the picture. Their bet on you amounts to $1—3 million dollars. You can’t depend on sizzle anymore because big money is at stake (no pun intended). Now your product has to be generating revenue.
![SERIES A = STEAK](https://thekitsap.com/wp-content/uploads/2021/03/pexels-anna-nekrashevich-6801639.jpg)
In other words, this round is about steak, not sizzle.
SERIES B = STEROIDS. The steak was good. Customers are buying it and eating it. Now the company needs an injection of steroids to get to the magical $100 million yearly revenue rate. You’re going to use this money to scale your business. Luckily, no urine tests are required for entrepreneurs.
SERIES C = SYCOPHANTS. If you make it to this round, you probably don’t need money anymore. This other series is just when the capitalist system collapses, or Google/Apple/Amazon decides to enter your business. At this point, investors are buying— you’re not selling—so they are sucking up to you to jump on a winner.