The Startup Lifecycle: Series 'A' Financing

This series of articles addresses a hypothetical, startup biotech company called BioTech that was founded by Joe Smith in Princeton, New Jersey. The previous articles discussed Joe’s early days in creating a startup, the law surrounding private placements of securities and documenting the offering. They also covered the research and development stage, basic R&D contract agreements and protection of intellectual property. This article will focus on funding continuing operations with Series A financing.

Continuing Operations: Additional Resources

Biotech secured early financing, designed and created a prototype product, and created value for the company in the form of intellectual property. It now needs to step up its game—Biotech must refine its product and business strategy so it can advance in the ranks of growing biotechnology businesses. Joe knows that the way to do this is to recruit talented leadership, engineers and support staff capable of creating and implementing a business plan to drive growth and take the company to the next level. Friends, family and angel investors have already done their part to provide seed funding. To raise the significant amount of capital needed to continue building BioTech, Joe must branch out of his investment circle to attract venture capitalist firms interested in start-ups, since he does not believe that his personal network has enough funds.

Series ‘A’ Funding