Series A, B & C Investment Legal Services
Expert UK Legal Support for Venture Capital Growth Rounds
At the Jonathan Lea Network, we specialise in guiding ambitious businesses through the complexities of Series A, B, and C funding. Whether you’re scaling a proven venture or entering new markets, our expert solicitors will help you secure investment on terms that protect your vision, your team, and your future.
What Are Series A, B & C Funding Rounds?
Series A, B, and C are successive rounds of equity investment designed to help established businesses scale rapidly. Unlike seed funding, which validates your MVP and market position, these rounds are focused on scaling operations, expanding teams, and accelerating growth. Typically, these funding rounds involve institutional venture capital firms, growth equity investors, and, at later stages, private equity houses.
Key Differences
The figures below represent a very rough guide to the main differences between Series A, B and C investment raises.
- Series A:
- Purpose: Expand team, develop products, grow sales and marketing
- Typical Raise: £1m – £15m
- Investors: Early VCs, some angels
- Equity Dilution: 20–25%
- Duration: 12–18 months
- Series B:
- Purpose: Accelerate market reach, optimise offerings, hire specialised talent
- Typical Raise: £10m – £50m
- Investors: VCs, growth equity funds
- Equity Dilution: 10–20%
- Duration: 3–18 months
- Series C:
- Purpose: International expansion, acquisitions, IPO preparation
- Typical Raise: £30m+
- Investors: Late-stage VCs, private equity, hedge funds
- Equity Dilution: 10–20%
- Duration: 3–4 months
The higher the series, the greater the expectations: established revenues, robust governance, and a proven market fit are essential.
Why Choose Jonathan Lea Network for Series A-C Funding?
- Streamlined Process:
Our lawyers know exactly what investors expect, helping you avoid delays and costly mistakes. We balance the needs of both founders and funders, ensuring the deal structure protects your company and future rounds. - End-to-End Support:
From updating your Articles of Association and drafting investor agreements to preparing your capitalisation table and managing due diligence, we’ll guide you through every step. - Proactive Risk Management:
We help you anticipate and resolve potential issues, whether around IP, contracts, compliance, or shareholder relations, before they impact your funding success. - Investor-Ready Governance:
We implement robust legal structures, advise on employee incentive schemes, and ensure your share capital table is investment-grade. - Cap Table & Scenario Modelling:
Our team prepares your cap table and provides scenario analysis to show the impact of funding on ownership and future rounds. - Due Diligence Preparation:
We collate and organise all legal documentation, from employment contracts to IP assignments, so you’re always ready for investor review.
Summary Of Our Series A-C Funding Legal Services
- Shareholder Agreements and Articles of Association Drafting
- Cap Table Modelling and Shareholder Resolution Tracking
- Due Diligence and Ongoing Compliance Support
- Share Issue and Board Structure Advice
- Employment and Service Contract Drafting
- Negotiation of Term Sheets and Investor Rights
- Convertible Loan and Debt Finance Documentation
- Warranties and Indemnity Advisory
- Existing Shareholder Liaison
Understanding Series A, B, and C: Key Legal and Practical Considerations
Series A: Laying the Foundation for Growth
- First major institutional funding round.
- Introduction of preference shares, board seats for investors, and complex governance requirements.
- Amending articles of association is essential.
- Common for VCs to require veto rights and information rights.
Series B: Scaling & Optimising
- Focus shifts to expanding into new markets, hiring for growth, and enhancing product/service offerings.
- Governance tightens with more rigorous reporting, anti-dilution protections, and sometimes new classes of shares.
Series C: Expansion & Exit Planning
- International expansion, M&A activity, or IPO on the horizon.
- Heightened scrutiny on financials, EBITDA, and compliance.
- Often involves private equity and sophisticated investors with stricter controls and exit expectations.
Frequently Asked Questions (FAQ)
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How will I determine the share value?
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Share value is typically determined through negotiations with investors, using methods such as comparable transactions, revenue multiples, discounted cash flow, and market analysis. Early-stage valuations rely more on team strength, market size, and growth metrics; later rounds focus on revenues, profitability, and precedent transactions.
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What are the common issues in managing share capital tables when raising successive investment rounds?
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Frequent issues include unclear or outdated cap tables, poorly tracked share option schemes, and not modelling the effects of new investment on dilution. Ensuring your cap table is accurate, with scenario modelling for different funding rounds, is vital for both compliance and investor confidence.
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What will investors expect from my business in return for the funding? What provisions can we include to avoid losing too much control and freedom of the company to develop?
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Investors expect board representation, veto rights over major decisions, regular reporting, and anti-dilution protections. To protect your control, negotiate reasonable consent rights, avoid excessive veto powers, and ensure founder-friendly vesting and governance provisions are in place.
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What are the typical and reasonable terms in a Series A term sheet?
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Reasonable terms often include board seats for investors, liquidation preferences (usually 1x), anti-dilution protection, and drag-along/tag-along rights. Excessive controls or high liquidation multiples should be negotiated carefully to maintain a fair balance.
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What is the best way to approach negotiations with investors?
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Be transparent, well-prepared, and understand your non-negotiables. Engage experienced legal counsel early, focus on long-term alignment, and avoid agreeing to over-restrictive terms just to close a deal quickly.
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How will funding affect existing shareholders? Will I need to involve them when I seek Series A-C investment?
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Yes, new funding will dilute existing shareholders. Their consent may be needed for share issuances, and it’s crucial to manage communication and expectations. Existing shareholders might have pre-emption rights or need to sign amended agreements.
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What’s the difference between venture capital and private equity? How might their expectations differ?
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Venture capital typically invests earlier, takes more risk, and focuses on rapid scaling with hands-on support. Private equity often enters at later stages, is more focused on financial returns and efficiency, and may seek greater operational control or direct exit strategies.
Get Legal Support for Series A-C Funding
Ready to accelerate your business growth? The Jonathan Lea Network provides expert, commercially-minded legal advice for every stage of the venture capital journey. Our experienced solicitors will help you secure investment, protect your interests, and prepare your company for long-term success.
Contact us today for a confidential consultation and discover how we can support your next funding round.
Please email us at wewillhelp@jonathanlea.net to arrange a discovery call. Afterwards, we can then email you a scope of work, fee estimate (or fixed fee quote if possible), and confirmation of any other points or information mentioned on the call.
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