Series B investors and VC firms across the globe

The Changing Landscape of Series B Funding

Gone are the days of prioritizing growth at all costs. Series B venture capital firms are now scrutinizing burn rates, margins, and unit economics before committing capital. Due diligence is more extensive than ever, with investors conducting deep customer calls, cohort analyses, and financial audits to ensure startups have sustainable growth models.

Another shift in Series B funding has been the rise of structured deals. Following the 2022–23 downturn, many VC firms introduced investor protections like liquidation preference multiples or ratchets to bridge valuation gaps. While this trend started normalizing in late 2023, it signaled a tougher negotiating stance from investors. Additionally, venture debt has become a common tool for Series B startups looking to extend their runway without excessive dilution.

Who Are the Leading Series B Investors?

The Series B funding environment has tightened, with many Series A-backed startups struggling to secure a follow-on round. This so-called “Series B Crunch” means only the highest-performing startups are successfully raising capital. Investors expect companies to show 3–4× year-over-year growth, a strong customer base, and improving profitability metrics to attract funding.

Major Series B venture capital firms include Sequoia Capital, Andreessen Horowitz (a16z), Lightspeed Venture Partners, Tiger Global, Insight Partners, and Coatue, among others.

While hedge funds and crossover investors scaled back from venture deals after 2022, sector-focused growth investors remain active, particularly in AI, semiconductors, fintech, and deep tech.