The Series B (Expansion Stage Venture Capital) is the financing round in which a company that has already validated its business model and demonstrated strong, repeatable growth raises capital to scale aggressively and capture market share; at this stage, the company typically has significant revenues, established product–market fit, and proven unit economics, and the focus shifts from building the business to expanding it—through hiring at scale, entering new markets, increasing production or infrastructure, and optimizing operations—while investors evaluate performance based on growth efficiency, competitive positioning, and the company’s ability to become a dominant player in its sector.
During the this phase the risk is high, as most of the investment can be easily lost, thus the valuation is the fourth lowest. Only investors who can afford a total loss should be considering this phase.
