A series LLC offers liability protection to its members. Some states allow forming a limited liability company with a series option. These include Alabama, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kansas, Missouri, Montana, Nevada, North Dakota, Oklahoma, Puerto Rico, Tennessee, Texas, Utah, Virginia, Wyoming. An LLC can have perpetual existence, continuing to exist even if members die or leave.
The limited partnership issues a separate series per new investment with separate objectives and asset segregation. Proposed federal regulations would treat each series as a separate entity for taxes, either a partnership, disregarded, or a corporation. Each Series can have a separate tax status.
Investors and founders state Series A funding goes to revenue-generating but not profitable companies, with a median of 18 months from seed. 15-20% strong monthly growth shows readiness. Profitability is desirable but not required given conditions. Healthy unit economics are important to eventually cover costs and profit.
A strategic partnership is a relationship between enterprises, usually with contracts, like the alliance between Starbucks and Barnes & Noble that benefits both parties by sharing space costs.
Seed and Series A are separate fundraising rounds. In 2021, the median Series A was $13 million, which is 2.5 times larger than in 2010. The median Seed was $4 million in 2020, indicating how Seed rounds have now become often the first major venture capital financing.
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