# What is Series C? 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-c](https://spidits.com/startup-glossary/series-c)

## Definition
Series C funding is raised by highly successful, late-stage startups to accelerate scaling, fund acquisitions, or prepare for an exit (IPO/acquisition).

## Architectural Mechanics & Deep Dive
Series C funding is raised by highly successful, late-stage startups to accelerate scaling, fund acquisitions, develop new product lines, or prepare for an exit (such as an IPO). At this stage, the startup is a mature business with substantial revenues, stable cash flows, and a proven track record. Investors include late-stage venture capital firms, private equity funds, hedge funds, and investment banks. Series C rounds are often large and focused on preparing the company's balance sheet for public markets.

## Industry Applications & Real-World Use Cases
Acquisitions, international scaling, and pre-IPO capitalization

## Frequently Asked Questions

### Who invests in a Series C round?
Late-stage venture firms, private equity funds, hedge funds, sovereign wealth funds, and investment banks.

### Are Series C companies typically profitable?
Some are profitable, but many continue to reinvest cash aggressively to maximize market share prior to an exit.

## Related Terminology
- [series-b](https://spidits.com/startup-glossary/series-b)
- [ipo](https://spidits.com/startup-glossary/ipo)
- [acquisition](https://spidits.com/startup-glossary/acquisition)

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