<span style="font-size:12pt;font-family:'Times New Roman';color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"><a href="https://www.planify.in/growth-funding/" target="_blank">Growth funding</a> i.e. Series A onwards round of funding, is a form of financing used by companies to expand their footprints by investing in products, investing in R&amp;D, entering new markets, hiring new talent, acquiring assets, and making strategic acquisitions. The growth funding is segregated among various series of funding ranges from Series A to Series D (can further be extended). The amount of funding startups raise at the growth stage ranges between ~<span style="font-size:12pt;font-family:Arial;color:#202124;background-color:#ffffff;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">₹2<span style="font-size:12pt;font-family:'Times New Roman';color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">5 cr to <span style="font-size:12pt;font-family:Arial;color:#202124;background-color:#ffffff;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">₹<span style="font-size:12pt;font-family:'Times New Roman';color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">100+ cr.<span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">Series A is generally raised by firms that have already obtained traction in their respective markets but still need additional capital to reach further expansion goals. This Series A ranges between ~<span style="font-size: 12pt; font-family: Arial; color: rgb(32, 33, 36); font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">₹<span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">25cr to <span style="font-size: 12pt; font-family: Arial; color: rgb(32, 33, 36); font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">₹<span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">50cr. The fund generally lasts for 12 to 18 months.&nbsp; If a company still needs funds after this period to dominate its market, it can go through Series B funding. By the point a startup gets Series B funding, it’s already successful and the success could be in terms of successful deployment of product, penetrating into difficult markets, etc apart from positive net profit. Series B funding is mostly used for scale — not development.&nbsp;<span style="font-size: 12pt; font-family: &quot;Times New Roman&quot;; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">Post Series B, the company moves towards Series C, where the funding will be provided only to those companies which are profitable. These funds are often used to expand market reach or M&amp;A activities. While it’s possible to undertake later rounds of funding, they’re typically used to help organizations push toward Mezzanine Financing, Pre-IPO, and IPO. Series C round of funding expands the horizon of investors and extends to hedge funds, private equity firms, etc. At this stage, usually, the firms have a huge customer base, stable revenue flow, good margins growth, well-established R&amp;D facility, etc.&nbsp;<span style="font-size: 13pt; font-family: &quot;Times New Roman&quot;; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">Some factors to consider when determining how much growth funding to raise:<ul style="padding-inline-start: 48px;"><li dir="ltr" style="list-style-type: disc; font-size: 12pt; font-family: &quot;Times New Roman&quot;; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre;" aria-level="1"><span style="font-size: 12pt; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">Growth plans: Consider the company's growth plans and expansion strategies. The funding amount should align with the growth objectives and plans of the company.</li><li dir="ltr" style="list-style-type: disc; font-size: 12pt; font-family: &quot;Times New Roman&quot;; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre;" aria-level="1"><span style="font-size: 12pt; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">Internal Due diligence: Review the company's financial projections and business plan to determine the funding needed to support those projections. Consider factors such as projected revenue, expenses, and cash flow requirements to arrive at a funding amount that provides an adequate runway for growth.</li><li dir="ltr" style="list-style-type: disc; font-size: 12pt; font-family: &quot;Times New Roman&quot;; background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre;" aria-level="1"><span style="font-size: 12pt; color: rgb(0, 0, 0); background-color: transparent; font-variant-numeric: normal; font-variant-east-asian: normal; font-variant-alternates: normal; vertical-align: baseline; white-space: pre-wrap;">Valuation and equity dilution: Consider the company's valuation and equity dilution implications when raising growth funding. Higher funding amounts may result in higher equity dilution.</li></ul>

<span style="font-size:13.999999999999998pt;font-family:'Times New Roman';color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Types of Growth Funding<span style="font-size:13.999999999999998pt;font-family:'Times New Roman';color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">There are different types of growth funding available to businesses, including:<span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"><ul style="margin-top:0;margin-bottom:0;padding-inline-start:48px;"><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Venture Capital: Venture capitalists are investors who provide funding to high-growth businesses in exchange for equity. They typically invest in startups or early-stage companies that have the potential for high returns.</li><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Private Equity: Private equity firms invest in established companies that are looking to expand or restructure their operations. They typically provide funding in exchange for a controlling stake in the company.</li><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Angel Investment: Angel investors are individuals who invest their own money in early-stage companies in exchange for equity. They typically invest smaller amounts than venture capitalists or private equity firms.</li><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Mezzanine Financing: Mezzanine financing is a hybrid of debt and equity financing that provides companies with capital to grow their operations. It's typically used by companies that have already raised some capital but need additional funding to achieve their growth goals.</li><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Strategic Investments: This type of funding involves partnerships with other companies that provide capital in exchange for a stake in the company. Strategic investments are often made by companies that are looking to gain access to new technologies or markets.</li></ul>

<span style="font-size:13.999999999999998pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Pros of Growth Funding<ul style="margin-top:0;margin-bottom:0;padding-inline-start:48px;"><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">One of the benefits of growth funding is that it allows startups to scale quickly and reach their full potential.&nbsp;</li><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Growth capital often comes from experienced investors who can provide strategic guidance, industry connections, and expertise to startups.&nbsp;</li><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Growth funding can provide startups with a competitive advantage over their competitors by enabling them to invest in key areas of their business and build a strong foundation for long-term success.</li></ul><span style="font-size:13.999999999999998pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:underline;-webkit-text-decoration-skip:none;text-decoration-skip-ink:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Cons of Growth Funding<ul style="margin-top:0;margin-bottom:0;padding-inline-start:48px;"><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Growth funding often comes in exchange for equity, which can dilute the ownership of the founders.&nbsp;</li><li dir="ltr" style="list-style-type:disc;font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><span style="font-size:12pt;font-family:'Times New Roman';color:#030303;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">With the dilution of equity, the involvement of multiple stakeholders could delay the execution of key decisions.&nbsp;</li></ul>

Growth funding i.e Series A onwards round of funding, is a form of financing used by companies to expand their footprints by investing into product, invest in R&D, enter new markets, hire new talent, acquire assets, and make strategic acquisitions. The growth funding is segregated among various series of funding range from Series A to Series D (can further be extended). The amount of funding startups raise at the growth stage ranges between ~₹25 cr to ₹100+ cr. 
Series A is generally raised by firms that have already obtained traction in their respective markets but still need additional capital to reach further expansion goals. This Series A ranges between ~₹25cr to ₹50cr. The fund generally lasts for 12 to 18 months.  If a company still needs funds after this period to dominate its market, it can go through Series B funding. By the point a startup gets Series B funding, it’s already successful and the success could be in terms of successful deployment of product, penetrating into difficult markets etc apart from positive net profit. Series B funding is mostly used for scale — not development.

What is Growth Funding & its types

Growth funding i.e. Series A onwards round of funding, is a form of financing used by companies to expand their footprints by investing in products, investing in R&D, entering new markets, hiring new talent, acquiring assets, and making strategic acquisitions.