Series A

In practice

Series A changes the nature of the investment. Short contracts give way to an investment agreement for the round itself and a shareholders’ agreement for the long-term relationship, with veto rights, a list of reserved matters, reporting and a seat on the advisory board. For founders, this means less freedom in decisions, for example on budgets, hires above a threshold, new lines of business or a sale. Commercially, the terms carried over from earlier rounds matter most. Liquidation preferences and anti-dilution protection shield only the investors, interact across the rounds and determine who gets how much on an exit.