Startup Series: The Road to Financial Glory (And Sometimes Hell)

Hello, I'm Amadeo Perez, a guy who has spent more than a decade playing the "Startup Game". I've seen companies fly high and others crash before taking flight. And in each of those journeys, there has been one constant: series funding.

So hold on, because I'm going to tell you, from my experience and with brutal honesty, what the hell this startup series thing is and how it can change everything (for better or worse) in your business.

What are serial funding rounds?

A startup doesn't become the next unicorn with a simple "blink of an eye." To get to that dream IPO (Initial Public Offering) or sell it for millions, most need injections of fresh cash. This is where the funding rounds or series come in. Basically, each series (A, B, C, and so on up to Z, if necessary) represents an investment cycle in which your company receives capital in exchange for equity participation.

Let's take it one step at a time:

1. Series A: The first big step

When you've already demonstrated that your business has some traction and isn't just smoke and mirrors, you can aim for a Series A. At this stage, the focus is on proving the business model and showing investors that your company has the potential to be great. This is where venture capitalists (VCs) become interested in you, willing to cough up between $2 million and $15 million, if you prove you're worth it.

But beware, this money is not free. By accepting the investment, you are diluting your ownership in the company, and that, my friend, is a double-edged sword. The bigger the check, the less yours the company becomes. In return, you have to grow fast and furious to meet expectations.

2. Series B: To scale like crazy

If you've survived Series A and the investors haven't ripped your head off, then you're ready for Series B. Here, things get serious. Investors expect you to scale: more users, more markets, more equipment.... more of everything! The amounts you can raise at this stage are between $10 million and $30 million.

The price? More participation for investors and a brutal pressure to reach the next level. Here, small improvements are no longer enough; you have to revent the market and show that you can be the next Spotify or Airbnb.

3. Series C: To conquer the world (literally)

By the time you reach Series C, you're no longer a rookie. You've proven that your business is not only viable, but that it has the ability to eat the world. How much are you raising here Well, you could be talking tens, if not hundreds, of millions of dollars. At this stage, the investors coming in are no longer just VCs, but private equity funds, hedge funds and other big financial players betting big on your growth.

The goal is to expand globally, acquire other companies and pave the way for a glorious exit: an IPO or a multibillion-dollar sale. But be careful, because there is also a dark side: investors are looking for an exit strategy. They want their money back (and with interest). So you'll have to play financial chess like never before.

4. Series D and Beyond: Only for the Brave

If you make it to a Series D or E, either you're close to going public or something has gone wrong along the way. Sometimes, companies that fall short of their Series C goals need more capital to reset course. At others, it's simply a way to give one last push before launching your IPO.

Now, let me be brutally honest with you: each new series means more dilution of your stake and more pressure to meet your investors' expectations. If you don't manage the thing well, you can end up being an extra in your own movie.

The Amadeo Experience: Hard Lessons and Inconvenient Truths

Look, I'm going to tell you something you won't read on any optimistic startup blog. When I started my first company, I knew nothing about Funding Series. Everything seemed great, until the first VCs came along. I thought they were saving me, but the reality is that they were buying me. At first it's easy money, yes. But then, when you realize you're no longer the only one making the decisions.... that's where the real hell begins.

I tell you from experience: always have a plan so you don't depend on outside capital forever. Investors are great when everything is going well, but if something goes wrong, they will turn their back on you in a heartbeat. And then you'll be on your own, carrying the expectations they put on you.

That's why, when I came to my third company, I decided to be more careful. I chose investors who, in addition to money, brought real value. People who understood my vision and didn't just want a quick return. And you know what? That made all the difference.

Conclusion: Is Series money your best friend or your worst enemy?

The startup series can be your springboard to success or your ticket straight to disaster, depending on how you manage expectations, pressures and, most importantly, your stake in the company. Before you jump in for millions of dollars, make sure you have a clear vision, a strong team and a strategy that doesn't rely solely on outside funds.

All you need is a strategy.