Series C Funding Explained: How Startups Scale & Grow

Startups raise money in different rounds as they grow. Each round supports a new stage of progress. Series C funding is one of those steps—but it’s a big one. By the time a company gets here, it’s already proven that people want what it sells.

This isn’t early testing or product experiments. This is scale. This is expansion. At this point, investors are betting on big moves, like going global or preparing for an IPO.

To give you an idea, the average Series C round ranges from $30 million to over $100 million. Some well-known companies like Airbnb and Stripe raised massive Series C rounds before becoming industry leaders.

Understanding Series C funding matters if you're studying startup funding stages or planning your own next round. In this guide, we’ll break it down clearly. You’ll learn what Series C means, when it makes sense, who usually invests, and how it fits into the full funding journey.

Let’s get started.

Series C funding is a late-stage investment round for startups that have proven business models and strong revenue. It helps companies scale operations, enter new markets, and prepare for IPO or acquisition.

By this point, the company has a working product, paying customers, and steady revenue. The business model is already proven.

At Series C, the goal changes. It’s no longer about finding customers. It’s about growing fast and grabbing more market share. Companies use this round to expand into new regions, add new services, or prepare for public listing.

The amount raised is often much higher than earlier rounds. On average, startups raise between $30 million to $150 million in Series C. Some raise more. For example, Revolut raised $250 million in its Series C round, pushing its valuation above $1.7 billion.

Investors in this round expect results. They want to see growth, scale, and a clear plan for return. This round often includes private equity firms, hedge funds, and large investment banks. These groups usually invest in safer bets—companies that already show strong business performance.

A startup doesn’t jump into a Series C funding round just because it wants more money. It needs to show strong progress first. By this stage, the company should already have:

Startups usually reach Series C after building a solid track record in earlier rounds. They’ve already handled product development, early growth, and market testing. Now, they’re ready to grow bigger—fast.

To raise Series C financing, most companies already have millions in yearly revenue. They’re no longer in testing mode. They’re focused on becoming market leaders.

Take Grammarly, for example. The company raised $200 million in its Series C at a $13 billion valuation. It didn’t happen by chance. Grammarly had strong traction, millions of users, and global demand.

Here are common signs that a company is ready:

Reaching this stage means the startup is scaling, not testing. Investors in a Series C funding round expect lower risk and higher returns. So readiness isn’t just about goals—it’s about proof.

By the time a company reaches the Series C round, it's no longer figuring things out. It's growing fast and needs more cash to move faster. The main purpose of Series C financing is to scale—across markets, products, and operations.

Let’s break it down.

Series C startups often look beyond their current location. They raise funds to enter new cities or countries. For example, Stripe expanded into several international markets right after its Series C investment. This kind of growth takes a lot of money—hiring teams, local marketing, logistics—it all adds up.

Growth doesn’t stop at borders. Many companies use this funding to improve their product or launch something new. This keeps them ahead of competitors and increases their value. A better product also means happier users and more revenue.

Some startups use the Series C round to buy smaller companies. This helps them remove competition or get access to new technology or talent. Instead of building from scratch, they buy what's already working.

As the company grows, the team must grow too. That includes hiring more staff, building better systems, and making sure operations can handle the scale. A Series C investment often funds these upgrades—tech tools, larger offices, and better processes.

With new capital, many Series C startups increase their brand presence. They invest in bigger ad campaigns, sponsorships, or partnerships to stand out. The goal is to be known and trusted—especially if they’re planning to go public.

The Series C round is where things get serious. By this stage, startups aren’t testing—they’re scaling fast. The money raised helps them grow bigger, enter new markets, and strengthen their position. But this round also comes with different expectations.

The average Series C funding amount is much higher than earlier rounds. Many startups raise between $30 million and $150 million, but some go beyond that. For example, Grammarly raised $200 million in its Series C financing. These numbers show that investors expect real growth.

Series C startups already have a working business. They bring in revenue and have a user base. Investors see this as less risky than early-stage rounds. At this point, it's about backing winners and helping them scale faster.

Unlike seed or Series A, this round isn’t about survival. It’s about speed. Companies use Series C investment to expand operations, grow their team, or enter new regions. It’s about reaching goals faster than the competition.

You’ll often see private equity firms, hedge funds, and large financial institutions joining at this stage. These groups usually write bigger checks and expect bigger outcomes. They're betting on companies that look like they’re heading toward an IPO or major acquisition.

Startups raising this round often have valuations in the hundreds of millions—or more. In many cases, Series C startups are already considered unicorns. A strong track record helps push up the value, making it easier to bring in large investors.

At the Series C funding round, the startup is already strong. It has revenue, users, and growth. Here’s who usually invests at this stage:

These investors are serious players. They help Series C startups grow fast, enter new markets, and get ready for the next stage—like a Series D or IPO.

Each funding round helps a startup at a different stage. Series A focuses on building the product and finding market fit. Series B helps scale the team and operations. By Series C, the company is ready to grow fast and expand far.

Here’s a simple comparison:

Series C startups already know what works. The money raised now is used to grow faster, go global, or acquire other companies. It's not about figuring things out—it's about winning bigger.

Raising a Series C funding round takes planning, proof, and the right team. At this stage, investors want results, not just ideas. Here's how founders can prepare and run a smooth funding process.

The lead investor sets the tone for your round. They usually put in the biggest check and help attract others. Start by listing investors who fund Series C startups in your industry. Look at who invested in similar companies.

You can find them on Crunchbase, LinkedIn, or recent news. A strong lead investor adds trust and pulls in follow-on investors. So don’t rush—get the right fit.

At Series C, your pitch must show business strength, not just potential. Include your revenue growth, market share, customer stats, and any major wins. Focus on how you're going to scale next.

Back your claims with data. Share key metrics like ARR, CAC, LTV, churn rate, and gross margins. These numbers help investors quickly understand your performance.

Your pitch deck should answer:

Unlike early rounds, Series C valuation is based on hard numbers. Investors look at your revenue, profit margins, user base, and growth rate.

For example, a SaaS company with $50 million ARR and strong retention could be valued at 10x ARR or more. Your past results, future forecast, and market size shape your valuation.

Keep it real. A fair valuation helps close the round faster and keeps future investors interested.

Once investors are interested, they’ll send you a term sheet. This is a short summary of the deal. It covers the investment amount, valuation, share type, board rights, and more.

Read it carefully. It’s okay to push back if something doesn’t feel right. Bring in your legal or financial advisor before signing anything.

Clear terms early on reduce issues later in the process.

Due diligence starts after the term sheet is signed. Investors will ask for financial records, customer data, legal documents, and team info. Be organized and ready to respond fast.

This step also shows how serious you are. If you have everything in order, the process moves quickly.

At the same time, make sure the investor is a good fit. Ask about their past deals, involvement level, and expectations. Alignment is just as important as capital.

Once due diligence is done, it’s time to finalize the deal. You’ll work with your lawyer to create and review documents like the Shareholders Agreement, Subscription Agreement, and Articles of Association.

Signatures from all parties seal the deal. Then, the funds hit your account, and the Series C financing is complete.

Now the real work begins—using that capital to grow smart and fast.

This process takes time, but each step builds trust. The clearer and more prepared you are, the easier it is to bring the right investors on board.

Raising a Series C round is more than just pitching and getting a yes. There's paperwork—and a lot of it. At this stage, investors want to see that your startup is legally sound and financially clear.

Here are the key documents you’ll need to get everything in order:

Tip: Use a virtual data room to keep all your documents in one place. It makes the process faster and shows you're ready for serious investment.

Getting the paperwork right builds trust and avoids delays. It’s a big part of why some Series C funding rounds go smoothly while others fall apart.

Raising a Series C funding round can unlock huge growth. But it also brings new challenges that don’t show up in early rounds. Founders need to be ready, because this stage comes with more pressure and higher expectations.

Investors in Series C financing are focused on results. They expect strong revenue, clear growth, and solid traction. If your numbers are weak or your story is unclear, it’s harder to get a yes. Unlike early-stage investors, they want to see data that proves your business is working at scale.

Many startups now reach Series C, which means you’ll be competing with other high-performing companies for the same pool of investors. These backers are comparing deals side by side. To stand out, your pitch has to be sharp, your numbers strong, and your plan convincing.

Closing a Series C investment usually comes with a clear goal—scale fast. That might mean entering new markets, building teams quickly, or rolling out new products. But fast growth also brings risks. If your operations aren’t ready, quality can drop, and systems can fail.

Valuation becomes harder at this stage. Earlier rounds might have set a high benchmark, but if your latest performance doesn’t back it up, investors may push back. It’s important to base your value on real revenue, user metrics, and market potential—keeping things realistic and fair.

As your company grows, the pressure on your team increases. You might need to hire faster, upgrade tools, and improve processes. If your systems can't handle the pace, growth becomes painful. Investors want to see that your team is ready for this next phase.

Not every investor is a good match. Some want quick exits, others care more about long-term growth. If your vision doesn’t match theirs, it can create problems—especially when decisions need to be made fast. Choose backers who understand your goals and support your direction.

Once a startup completes its Series C funding round, the next step is often bigger than just raising more capital. For many, it’s about preparing for a major move—going public or being acquired.

Let’s look at what usually comes after Series C and how founders decide the next direction.

An Initial Public Offering (IPO) means selling shares of the company on a stock exchange. This lets the public invest in your startup, and it gives early investors a way to cash out.

Many well-known companies went public after Series C. For example, Airbnb raised its Series C in 2012 and went public in 2020. The process can take time, but a strong Series C performance helps lay the foundation.

Before going public, investors want to see:

If you check these boxes, you may be ready to start the IPO process.

Some startups raise a Series D round instead of heading straight for an IPO. This happens when:

Later rounds can also bring in more strategic investors who help expand to global markets or launch new products.

Raising a Series C funding round means you’ve come a long way—but this next step requires a different kind of pitch. Investors at this stage want to see traction, leadership, and a plan that actually works. So how do you get their attention?

Here are the tips that matter most—explained clearly and casually.

This is the first thing investors will look for. They don’t want to guess if you’re doing well—they want proof. You need to show consistent revenue growth, active users, customer retention, and real demand for your product or service.

For example, if you grew your revenue by 100% in the last year and your churn rate is under 5%, that’s something to highlight. Include simple charts or before-and-after numbers to make your progress easy to understand. If your business is stable and scaling, they’ll want in.

Investors don’t just hand over money and hope for the best. They want to know exactly where the funds will go and how that will lead to growth. Break it down:

Saying “We’ll use the money for growth” is too vague. Instead, say something like: “We’re using 40% of this round to enter three new markets, 30% to grow our engineering team, and the rest to boost marketing.” Clear plans build confidence. It shows you know where you're going and what you need to get there.

A big mistake many founders make is waiting until they need money to talk to investors. That’s too late. Start building relationships months in advance—even before you're ready to raise. Share updates, ask for feedback, and keep them in the loop.

Think of it like dating—you don’t ask someone to marry you on the first date. Investors want to trust you. The more they hear from you over time, the easier it is for them to say yes when you're finally ready to raise.

By Series C, your startup is more than just an idea—it’s a growing company. And people invest in teams, not just products. Show that your leadership team has the skills and experience to handle the next stage of growth.

Highlight key hires, past achievements, or industry expertise. If someone on your team helped another company scale to 8 figures in revenue, say it. Confidence in your team makes investors feel safer putting in large checks.

Series C investors are thinking long term. They're not just wondering what happens next quarter—they’re thinking about the next 3 to 5 years. Will this company go public? Will it be acquired? Will it become a market leader?

Share your bigger plan. If your goal is to IPO in two years or launch in five new countries, say it. You don’t need every detail figured out, but showing a clear vision helps investors see the upside of sticking with you.

Finally, don’t make things too complicated. Your pitch should be easy to follow and clear enough that someone could explain it after one meeting. Cut the jargon, skip buzzwords, and focus on what matters.

Try this test: If someone heard your pitch and had to explain your company to a friend in one sentence, what would they say? If it’s clear and memorable, you’re doing it right.

Series C funding is a major step for startups that are ready to grow fast. It shows that your product works, your team delivers, and your business has real demand.

At this stage, investors expect strong numbers, a solid plan, and a clear path to bigger goals—like an IPO or a successful exit. The money raised in a Series C round helps scale operations, enter new markets, and improve products.

If you're a founder preparing for Series C, focus on your data, your pitch, and your long-term vision. The right plan and the right people can make this round the most important one yet.

Stay clear, stay focused, and make every move count.

After Series C funding, startups may raise Series D or prepare for an IPO. Some also explore acquisitions or private equity deals. The next step depends on business goals, market conditions, and growth plans.

The average Series C funding amount ranges from $30 million to $150 million. However, larger tech companies can raise over $200 million, depending on revenue, growth rate, and market opportunity.

Closing a Series C funding round usually takes 3 to 6 months. This includes pitching, negotiation, due diligence, legal reviews, and final agreements. A well-prepared company may close faster.

It’s rare, but possible. Startups with strong revenue, proven traction, and rapid growth can sometimes raise Series C without previous rounds. However, most companies go through Seed, Series A, and B first.

Series C startups have a higher success rate than early-stage ones. About 80% continue growing or reach a liquidity event. Still, success isn't guaranteed, and scaling challenges remain.