By the time a startup raises a Series B, the core question has shifted from “does this business model work” to “how big can this get” — the money is typically used to scale go-to-market efforts, expand into new markets or product lines, and hire aggressively. Series B investors are usually growth-stage VC funds, sometimes joined by the company’s existing seed and Series A investors doing follow-on (pro-rata) investments to maintain their ownership percentage.

A nuance worth knowing: not every successful startup raises or needs a Series B — some choose to stay smaller and reach profitability instead, particularly in markets where the addressable market size doesn’t support the kind of scale VC investors are looking for. Skipping a Series B by choice is not itself a failure signal, even though it’s less visible in funding news than a big new round announcement.

🇵🇭 Philippine Example

Kumu closed its Series B round in mid-2021, co-led by SIG and Openspace Ventures, with participation from returning investors Kickstart Ventures, Foxmont Capital Partners, and Summit Media — reportedly targeting around US$15 million — closing less than 12 months after its April 2020 Series A.

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