The Biggest Round I've Seen in a LONG Time...
Written by Dave Lavinsky on Monday, May 3, 2010
Series B funding, as you may recall, is the 2nd institutional round of equity funding that a company receives.
Typically a Series B financing event will raise $5 to $10 million for the company. But this is just a guide, and many companies raise less or more than this amount.
Like Amonix who designs and manufacturers concentrated photovoltaic solar power systems.
Last week Amonix raised a $129.4 million Series B financing round - this is the biggest Series B round I've seen in a long time. The round was led by the VC firm Kleiner, Perkins, Caufield & Byers. Other participants in the round included Adams Street Partners, Angeleno Group, PCG Clean Energy & Technology Fund, Vedanta Capital LP, New Silk Route, The Westly Group, and current investor MissionPoint Capital Partners.
A few notes to point out:
1. $129.4 million - yes, that's a LOT of money. There is a ton of financing waiting for the right companies. So yes, even in this economy, venture capital financing IS readily available.
2. The round was "led" by one VC firm. The "lead" VC firm creates the terms of the deal. They also invest the most money. The other investors are called "syndicate investors" or "co-investors" and invest at the same terms as the lead investor, so you only need to negotiate once. Having multiple VC firms participating in a venture capital financing event is common.
3. The "current investor" means the investor who provided the previous round of funding (Series A). Oftentimes, as happened in this case, that investor will put in more money to retain their share of the company's equity.
If you are seeking venture capital financing, I not only lay out the exact proven path you should take, but educate you on every detail you need to know in my Step-By-Step Guide to Raising Venture Capital.
Click here to learn more.
Share this article:
Products & Services
Growthink Around The Web
Best of Growthink
Looking for Opportunities Now? How to Write a Business Plan for Raising Venture Capital Top Seven Capital Raising Mistakes 20 Reasons Why You Need a Business Plan Top 10 Private Placement Memorandum (PPM) Mistakes The Secrets to Their Success? 25 Quotes From Famous Entrepreneurs The 6 Untold Reasons Why Businesses Fail 7 Entrepreneurs Whose Perseverance Will Inspire You Top 7 Myths About Starting a Business Business Exit Strategy: Planning to Sell Your Business How to Make a Business Plan Capital Raising Resource Center Investing in Private Equity via Your IRA