# What is Series B? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Funding  
> **Canonical Citation:** [https://spidits.com/startup-glossary/series-b](https://spidits.com/startup-glossary/series-b)

## Definition
Series B funding is designed to scale a startup past the initial growth phase, expanding its market reach, team size, and operations.

## Architectural Mechanics & Deep Dive
Series B funding is designed to scale a startup past the initial growth phase, expanding its market reach, team size, and operations. Startups raising Series B rounds have established product-market fit, proven business models, and significant recurring revenues. The capital is used to expand sales and marketing teams, invest in research and development, and potentially pursue international expansion. Valuation at Series B is heavily based on financial metrics, user growth rates, and competitive market positioning.

## Industry Applications & Real-World Use Cases
Expanding sales channels, product lines, and market share

## Frequently Asked Questions

### How is a Series B valuation determined?
Series B valuations are determined primarily by financial performance metrics, recurring revenue scale, historical growth rates, and competitive positioning.

### What is the capital used for in a Series B round?
It is typically used to scale sales and marketing teams, accelerate product development, and expand into new markets.

## Related Terminology
- [series-a](https://spidits.com/startup-glossary/series-a)
- [series-c](https://spidits.com/startup-glossary/series-c)
- [arr](https://spidits.com/startup-glossary/arr)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*