Series B is the second institutional priced equity round following Series A, typically focused on scaling a business that has already demonstrated product-market fit, repeatable customer acquisition, and sustainable unit economics. Round sizes and valuations are materially larger than Series A: typical Series B in MENA/Türkiye markets ranges from $10M–$40M; in U.S. and Western European markets, $20M–$100M+ is common.
Series B rounds are typically led by growth-oriented venture funds — often a different fund tier than Series A leads — and frequently include strategic investors, corporate venture arms, or growth-equity firms. The investor base diversifies; cap-table complexity increases; and governance architecture often evolves with additional board seats, expanded information rights, and more elaborate protective provisions.
Key structural elements include: Series B Preferred Stock (a new class typically pari passu with Series A on liquidation but with its own conversion, anti-dilution, and approval rights); updated cap-table architecture (reflecting all prior rounds, employee equity, and any prior convertibles); refreshed term-sheet protections (often more investor-favorable on liquidation preference, board composition, and protective provisions); and pay-to-play mechanics in some rounds where existing investors must participate to preserve preferred rights.
Diligence at Series B is more extensive than Series A: full financial audit, customer concentration analysis, churn modeling, technical and security review, IP audit, regulatory compliance verification, employment and HR review, and detailed cap-table reconciliation. Pre-round preparation typically takes 8–16 weeks of focused internal work plus external counsel.
Vircon Legal advises founders and investors on Series B structuring: term-sheet negotiation, definitive documentation, cap-table modeling across multi-round dilution scenarios, governance evolution between Series A and B, and the coordination of cross-border investor structures for Türkiye-domiciled targets.