Series B investors stop backing the story and start checking the traction. To be ready, an Australian startup needs a consistent monthly board pack, unit economics it can defend, a model built for an institutional investor and a data room built well before the process opens. The finance leader who got you to Series A may not be the person to run this raise.
Why a Series B is a harder raise in Australia
Fewer Australian startups get to a Series B than a few years ago. Series B was 18% of Australian startup deals in 2021 and only 7% in 2025, according to our analysis of the Series B squeeze in Australian startup funding.
When I wrote about this in September 2026, the money was there, but it was pooling at the two ends: mega raises going to AI businesses with hyper growth stories, and plenty of early-stage appetite where a small cheque backed the team and the idea. Series B sat in the middle, as the point where investors stop backing the story and start expecting genuine commercial impact, clear unit economics and a business that clearly works. The bar for that had moved a long way in the previous couple of years, and a lot of founders were being caught out by it.
What changes between a Series A and a Series B
A Series A investor is mostly checking that the foundations exist: accrual books, a forward model and a handful of metrics, which I cover in getting your finance function ready for a Series A. A Series B investor assumes those are in place and asks what they prove.
| At Series A | At Series B | |
|---|---|---|
| What investors back | The team, the product and early signs of demand | Proven traction, commercial impact and clear unit economics |
| Reporting | Accrual books closed every month | A consistent monthly board pack with a track record behind it |
| Model | A driver-based forecast someone other than the founder can explain | Use of funds, burn and milestones an institutional investor can stress test |
| Complexity | Usually one product in one market | Often several products or countries, with the tax and governance that brings |
| Finance lead | A Head of Finance or Financial Controller building the function | A first CFO, often starting part time ahead of the raise |
The business itself is also harder to report on by then. By Series B a company often runs more than one product line or operates in more than one country, which means more complicated tax and more moving parts. Investors at that level expect more sophisticated reporting, governance and FP&A, and that needs a strategic finance leader, not only someone keeping the day to day accurate.
Start 12 to 18 months before you go to market
Series B preparation starts well before the deck. Most of what a growth investor tests is a track record: months of monthly numbers, reported the same way, that line up with what the board has already seen. You cannot produce that history in the weeks before a process opens.
Finance tends to get looked at when it becomes urgent. The problem is that by the time it is urgent, the gap is usually much bigger than founders realise. Most founders I work with come from tech, product, growth or sales rather than finance, so things like R&D tax or the difference between cash and profit are easy to miss. What brings a founder comfort is the right finance hire giving visibility over the next 3, 6 and 12 months before the raise goes ahead.
The finance pack a Series B investor expects
A Series B finance pack has four parts, and each has to agree with the others month after month.
- A consistent monthly board pack. The same structure, the same metric definitions and the same close date every month. See what goes in a startup board report.
- Unit economics you can defend. Gross margin, CAC payback and net revenue retention by cohort, calculated from the ledger.
- A model built for a growth investor. Burn, runway and use of funds through to the next raise, with base, upside and downside scenarios and a clear line from the money raised to the milestones it buys.
- A data room built early. A clean cap table, customer contracts, IP assignments, employment records and reconciled statements, assembled long before anyone asks for them.
What investors check once a term sheet is signed, in startup due diligence.
When to bring in your first CFO
The first CFO usually lands at late Series A or Series B. It is a different job from the first finance hire, who is there to build the function and keep the numbers right. A first CFO's value moves beyond “is the reporting accurate” to “what do these reports mean for the next 3 years”: fundraising strategy, capital structure, new markets and products, and the board and investor relationships.
The mistake I see on the way into a Series B is expecting a capable Head of Finance to lead a Series B or C raise and provide the sophistication that stage needs. That is asking them to do a job they were never brought in for. A Financial Controller or Head of Finance growing with the business at that pace is rare, and usually does not happen.
The first CFO does not have to start full time. As I said on a podcast about CFOs and startup hiring, I have placed CFOs one to two days a week in the lead-up to a Series B, to help with the raise and get everything in place. Once the capital comes in and the business pushes forward, they move gradually towards full time over 6, 12 or 18 months.
The signals that say it is time to hire a CFO, and the timing mistakes founders make.
Story Recruitment places the first finance leader and then the first CFO in venture-backed Australian tech, fintech and deep tech companies, and a CFO for a Series B raise sits squarely in that second search.
How a part-time CFO becomes a full-time hire after the round.
Common questions
When should you start preparing for a Series B?
Start 12 to 18 months before you plan to go to market. Series B investors test a track record of consistent monthly reporting and unit economics, and that history cannot be produced in the weeks before a process opens.
What do Series B investors look for that Series A investors do not?
Series A investors back the team, the product and early demand. Series B investors expect proof: genuine commercial impact, clear unit economics, a model they can stress test and reporting that has been consistent month after month.
Do you need a CFO for a Series B raise?
A Head of Finance or Financial Controller is hired to build the finance function, and leading a Series B raise is a different job: fundraising strategy, capital structure and investor relationships. The first CFO usually lands at late Series A or Series B, and it does not have to be full time at first. I have placed CFOs one to two days a week ahead of a Series B raise, moving them to full time over 6, 12 or 18 months once the capital comes in.
What should be in a Series B data room?
A clean cap table, reconciled financial statements, monthly board packs, the financial model, customer contracts, IP assignments and employment records. Build it early so it is complete before investors ask.
How common are Series B rounds in Australia?
Less common than they were. Series B was 18% of Australian startup deals in 2021 and 7% in 2025, according to our Australian startup funding analysis.
These guides set out how we see it, drawn from the searches we run and the finance leaders we work with. They are general information about the market, not financial, accounting or legal advice, and they are no substitute for advice on your own circumstances.