Because generally speaking, those who cannot sustain Series C financing have business models that are not stable enough, so it is not recommended.

Many entrepreneurs become overconfident after receiving Series B and C financing, thinking that Series C financing will also be easy to obtain.

However, the amount of Series C financing is larger than that of B and A financing, and at this time, the entrepreneur's business model is not mature enough, and investors will not invest in the project because they cannot see tangible income data.

In order to achieve the purpose of financing, many entrepreneurs do not hesitate to spend money in the early stage to buy users, and they can obtain a large amount of traffic in a short period of time. However, this method is not a long-term solution after all. Once the funds are not enough, problems with the capital chain will arise.

Businesses will eventually fail.

Behind the financing, many markets will have room for the survival of third-party investors, but not all third-party investors will have the opportunity to obtain Series C.

Although those funds that invest in Series C also care about cost performance, in general they care more about whether the company has the opportunity to become big enough and lead the industry.

In most market segments with obvious scale effects and network effects, if Lao Er wants to obtain Series C financing from first-tier funds, the original market must be large enough.

Two other prerequisites need to be met at the same time: first, the market share gap with the first place cannot be too large, preferably within 50%; second, if the first place has been invested by one of BAT, it is best to have someone behind him

Another company in BAT provides backing.

If the third person wants to get Series C financing, these two conditions will be changed to: the gap with the second place is within 20%; and the top two are not both invested by BAT.