Transcript:
Ira Gubernick:
In this video, we're discussing the series A fundraising. To take the mystery away from the term series A round, it's a term often used for the first round of financing closed by an investor.
The term series A is often used because the investor is being issued a preferred equity instrument, and since it's the first type of preferred equity being issued by the company, it's usually termed by the lawyers as series A preferred.
There's no specific dollar amount required to close a series A financing. However, only accredited investors should be solicited for series A financings. Friends and family providing initial seed money often do so in the form of a loan that converts at the time of closing as series A financing.
If you have questions or would like to learn more about series A financing, or other issues facing startups and emerging growth companies, please visit us at cozen.com/copilot.
