Introduction
Series C focuses on scaling into a global powerhouse. It is all about acquiring or incorporating industry competitors. At this stage, startups should already be among market leaders and aim for more capital to sustain their hypergrowth, international expansion, and large-scale operations.
Interested in detail? Here is a short break-down of series C funding.
In this article:
- Pre-IPO Hypergrowth | Series C Funding Go to text
- Challenges of Raising Series C | Startup Basics Go to text
- What are the Main Types of Investors | Series C Funding Go to text
- How to Secure Series C Funding? | Startup Basics Go to text
- What Happens After Series C? Go to text
Pre-IPO Hypergrowth | Series C Funding
At Series C, startups focus on significant growth moves.
Companies expand products or enter new industries to capture more market share. Many invest in mergers and acquisitions (M&A) to buy competitors, gain new technology, or boost capabilities.
Series C funding is for startups transitioning from fast-growing private companies to global giants.
Many startups focus on strong branding and marketing to attract more customers world-wide. Efficiency matters too – companies polish their pipelines and cut costs.
During this stage, companies aim to enter new international markets and increase their global footprint.
In short, Round C is all about:
- maxing the growth,
- acquiring other startups,
- global expansion,
- preparing for an IPO or acquisition.
What is the Purpose of Series C?
Many startups at this point aim for an IPO or big exit.
That is exactly why they are trying to improve their finances and compliance.
Tech and infrastructure upgrades are often key. Series C funding may include such elements as AI implementation, mass-automation, or security buildup.
Hiring top talent and strong leadership also becomes vital for IPO or future big exits.
📌 Example: WeWork raised $3B in Series C funding from SoftBank to expand co-working spaces globally.
Challenges of Raising Series C | Startup Basics
- Maintaining high growth rates – investors expect continued 50-100%+ YoY growth.
- Operational complexity – managing thousands of employees across multiple countries.
- Regulatory & compliance risks – preparing for stricter financial reporting & regulations.
- IPO readiness – need strong profitability metrics, SEC compliance, and investor confidence.
📌 Tip: Many startups fail at Series C+ because they expand too fast, lose efficiency, or face regulatory issues.
What are the Main Types of Investors | Series C Funding
In Series C, startups attract investment from a range of institutional investors looking to scale companies on the brink of major milestones.
Late-stage venture capital (VC) firms continue to play a key role, investing in high-growth, high-revenue startups that are nearing the peak of their growth phase.
Private equity (PE) firms also participate, typically targeting companies that are close to an IPO and are looking for additional capital to push them across the finish line.
Hedge funds and mutual funds become more involved at this stage, as institutional investors preparing for public market listings seek to position startups for an IPO.
Additionally, sovereign wealth funds, which are government-backed, invest in top-tier startups with significant growth potential.
Investment banks also step in at this stage, helping startups prepare for IPOs or potential mergers and acquisition (M&A) deals.
Some of the top investors in Series C+ funding include:
- SoftBank Vision Fund,
- Tiger Global Management,
- BlackRock,
- Goldman Sachs,
- Sequoia Growth Fund, etc.
Interested in a bird's eye point of view?
Click here to see our roadmap article: Startup Funding Rounds >
How to Secure Series C Funding? | Startup Basics
- Demonstrate strong financial performance – Focus on high revenue, profitability, and market leadership POV.
- Prove market dominance – Show why the startup is an industry leader.
- Prepare for IPO compliance – Strengthen corporate governance and transparency.
- Attract institutional investors – Build relationships with hedge funds, PE firms, and sovereign wealth funds.
- Leverage M&A strategies – Acquire competitors to consolidate market share.
📌 Example: Uber raised $1.2B in Series D funding from Baidu and other investors to expand globally before its IPO.
What Happens After Series C?
| 📉 If fails: | 🚀 If successful: |
| The startup may sell to a larger company (M&A), pivot, or face financial decline. For promising projects, there is also Down Round funding. | The startup moves to Series D, E, F, etc., then launches an IPO ($1B+ valuations typical). Additionally, preparing for an IPO is a significant focus, as startups work on strengthening their financials, ensuring compliance, and making sure they are ready for the scrutiny of the public market. |
Click here to read our article on IPO Funding Round >
