Series B funding is the second significant round of venture capital financing for a startup or early-stage company. After demonstrating market fit and initial growth, companies seek Series B funding to scale operations, expand into new markets, and accelerate product development. This round typically involves larger investments from venture capital firms and sometimes new investors. The capital raised is used to grow the business beyond its initial phase, hire more staff, and increase marketing efforts. Series B rounds often value the company higher than earlier rounds, reflecting its progress and potential for further growth.