Streaming analytics platform Coralogix gets $142 million in Series D round

Streaming analytics platform Coralogix gets $142 million in Series D round

Subject: Economy

Section: Indian Economy

Context:

The Series D round is a little complicated compared to the previous ones. Although most organizations finish raising money in the previous round, there are some reasons an organization may choose a Series D round:

1. THE POSITIVE

If an organization discovers a new opportunity to expand before going for an IPO, it may look to boost its chances. It’s quite common for organizations to raise their values through a Series D round before going public. Alternatively, organizations that want to stay private for longer may also look for Series D funding.

2. THE NEGATIVE

If an organization fails to meet the expectations it had laid out after completing the previous round, it may hit a down round. It’s when an organization raises money at a lower valuation than the previous round. A down round devalues the stock and, at the same time, gives the organization an opportunity to push through tricky times. Mostly, it has a bad effect on the organization as it loses morale, stock value and credibility.

A Series D round is typically funded by venture capitalists. Very few startups reach this round, and the valuation and the amount raised varies.

Series A Funding

• Once a business has developed a track record (an established user base, consistent revenue figures, or some other key performance indicator), that company may opt for Series A funding in order to further optimize its user base and product offerings.
• In this round, it’s important to have a plan for developing a business model that will generate long-term profit.
• Series A rounds raise approximately $2 million to $15 million
• Investors are looking for companies with great ideas as well as a strong strategy for turning that idea into a successful, money-making business. The investors involved in the Series A round come from more traditional venture capital firms.
• It’s also common for investors to take part in a somewhat more political process. It’s common for a few venture capital firms to lead the pack. In fact, a single investor may serve as an “anchor.” Once a company has secured a first investor, it may find that it’s easier to attract additional investors as well.
• Angel investors also invest at this stage, but they tend to have much less influence in this funding round than they did in the seed funding stage.

Series B Funding

• Series B rounds are all about taking businesses to the next level, past the development stage.
• Investors help start-ups get there by expanding market reach. Companies that have gone through seed and Series A funding rounds have already developed substantial user bases and have proven to investors that they are prepared for success on a larger scale.
• It is used in bulking up on business development, sales, advertising, tech, support, and employees costs a firm a few pennies.
• The average estimated capital raised in a Series B round is $33 million
• Series B appears similar to Series A in terms of the processes and key players.
• The difference with Series B is the addition of a new wave of other venture capital firms that specialize in later-stage investing.

Series C Funding

• Businesses that make it to Series C funding sessions are already quite successful.
• These companies look for additional funding in order to help them develop new products, expand into new markets, or even to acquire other companies.
• In Series C rounds, investors inject capital into the meat of successful businesses, in an effort to receive more than double that amount back. Series C funding is focused on scaling the company, growing as quickly and as successfully as possible.
• Series C funding could be used to buy another company.
• In Series C, groups such as hedge funds, investment banks, private equity firms, and large secondary market groups accompany the type of investors mentioned above.
• Companies that do continue with Series D funding tend to either do so because they are in search of a final push before an IPO or, alternatively, because they have not yet been able to achieve the goals they set out to accomplish during Series C funding.