Raising a Series A round is a big step for any growing company. You succeeded with a Seed Funding campaign, you’ve tested your product, brought in early customers, and now you’re looking to scale. This round of investment often brings in millions, and with that level of funding comes more detailed scrutiny and input from investors.
This guide explains what Series A funding is, when companies typically raise it, what legal checks to prepare for, and how legal assistance can help you get investor-ready with confidence.
What is Series A funding?
Series A funding is usually the first large-scale institutional investment a startup receives after seed funding. While seed money helps you build your product and prove that people want it, Series A money is about growth: scaling your team, expanding to new markets, or building out infrastructure.
In the UK, Series A rounds usually range from around £2 million to £10 million. This investment is typically led by a venture capital (VC) firm, often alongside other institutional or strategic investors. Unlike seed investors, Series A backers usually take a more hands-on approach and expect more detailed reporting, stronger governance, and legal certainty.
When is a company ready for Series A?
This depends on several factors, but Series A investors look for clear signs that your business is ready to grow fast. You’ll usually need:
- A working product with paying customers
- A track record of revenue growth (even if it’s early-stage)
- Evidence of strong demand or market traction
- A clear plan for how the money will be used to scale the business
- Key team members already in place, especially in tech, product and operations
Many Series A investors also want to see that you’ve raised and managed earlier rounds in a clean and professional way. That includes having your company records, contracts and shareholdings properly documented.
What is Series A funding used for?
Most companies use Series A funding to scale. That could mean:
- Hiring more staff, particularly in engineering, sales and marketing
- Expanding into new geographic regions or launching new products
- Investing in systems, automation or infrastructure
- Strengthening customer support or operational processes
- Building out leadership and middle management
Unlike earlier rounds, Series A isn’t for testing ideas. It should be used to accelerate a business that already works. That’s why investors will expect you to show how their capital will drive measurable growth and move the company closer to profitability or the next funding round.
What legal work do you need to prepare for Series A?
Series A investors typically run detailed legal due diligence. That means checking your company’s records, contracts, compliance and finances to make sure there are no hidden issues. If anything is missing or incorrect, it can delay the funding round, or even put it at risk. Here are the areas most likely to be reviewed:
1. Company structure and records
Investors will want to confirm that your company is properly set up and your records are complete. That includes:
- Accurate and up-to-date registers of shareholders and directors
- Properly signed board and shareholder resolutions authorising previous share issues
- An updated articles of association, especially if new share classes or investor rights were introduced
- Any founder vesting terms, to ensure long-term alignment
2. Share ownership and cap table
Your cap table (short for capitalisation table) must clearly show who owns what. It should match your Companies House filings, with no surprise shareholders or informal promises of equity. If previous share transfers weren’t properly recorded, this is the time to fix it.
Series A investors will also expect to see that your option pool has been correctly set up and that option grants are properly documented.
3. Contracts and intellectual property (IP)
Any core intellectual property like code, designs, content, or branding should be owned by the company, not individual founders or contractors. You’ll need:
- Assignment deeds transferring any pre-incorporation IP into the business
- Clear IP clauses in your employee and contractor agreements
- Properly signed employment contracts, especially for key staff
- A review of customer contracts, supplier agreements and any other long-term obligations
If you’re offering software or digital services, standard terms and privacy policies should be reviewed to make sure they comply with data protection law.
4. SEIS/EIS status
If you previously raised seed funding using SEIS or EIS (government-backed investment tax relief schemes), investors may want to check that your company still qualifies (or that those earlier shares were correctly issued). Mistakes in SEIS/EIS paperwork can cause tax issues down the line, so it’s worth double-checking with a solicitor before the round.
5. Compliance and licences
If you operate in a regulated sector such as fintech, health tech, or pharma, investors will expect to see that you have the required licences or are actively pursuing them. You’ll also need a GDPR-compliant privacy policy if you handle customer data.
Depending on your sector, you may also need to show health and safety policies, insurance documentation or other compliance materials.
6. Investment documents
The Series A round will involve a set of legal agreements, including:
- An investment agreement, setting out the terms of the investment, warranties, and conditions
- A subscription agreement, confirming who is buying shares and for how much
- A shareholders’ agreement, laying out investor rights, board representation, voting matters, and exit terms
- Updated articles of association, reflecting any new share classes, voting rules or protections for minority investors
Each of these documents needs to be carefully drafted and negotiated, ideally by a solicitor experienced in venture capital deals.
Why legal advice is important
Series A rounds are high-stakes. You’re raising a large sum, giving away a significant share of your business, and committing to new legal obligations that will shape the company for years to come.
A specialist solicitor can guide you through the key documents, flag investor terms that could affect your long-term control, and make sure the share structure, option schemes and company constitution are properly set up for growth. They’ll also help you navigate SEIS/EIS compliance, protect your intellectual property, and avoid common pitfalls that can delay or derail funding rounds.
Working with a law firm that understands early-stage investment can make the process far smoother and give both you and your investors greater confidence moving forward. At JPP Law, we work with growing UK businesses every day to help them get investor-ready. We know what investors expect, which issues tend to raise red flags, and how to keep the paperwork clear, compliant and deal-friendly.
Ready to raise?
If you’re preparing for Series A Funding Round, it’s worth getting your legal house in order before sending out pitch decks. JPP Law can review your documents, spot any issues early, and make sure you’re presenting your company in the best possible light.
Get in touch to book a free consultation with a solicitor. We’ll talk through your plans and help you get ready for the next stage of growth.
You may also be interested in:
The First Four Stages of Funding Rounds: What You Need to Know
Legal Preparation for Pre-Seed Funding
Legal Preparation for Seed Funding
Legal Preparation for Series B Funding
Startup Funding Rounds – Advice and Preparation
Advanced Subscription Agreements: A Tool for Managing Valuation Uncertainty
Convertible Loan Notes: The pros and cons when it comes to raising business finance
Crowdfunding Opportunities for Startups and Scaleups in the UK
UK Startup Funding Options and the Associated Legal Considerations
The Pros and Cons of Venture Capital Funding
Peer-to-Peer Lending: Advantages and Disadvantages
Funding alone is not always enough to ensure startups thrive
