Definition
A subsequent funding round after your initial Series A. It's when investors decide if they believe in your vision or think you're failing and want to cut losses proportionally.
Example Usage
Our Series B was a follow-on from all our Series A investors, which meant they were both confident in our progress and terrified of dilution.
Origin
Venture Capital funding terminology
Fun Fact
Follow-on participation rates (% of Series A investors participating in Series B) are strong indicators of founder satisfaction and company health
Source: Venture Capital funding standard terminology
Related Terms
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See “Follow-On Round” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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