Why our small, inside Series B round is exactly what we need

Rich - great post. Think your points about SaaS companies and the multiple smaller "seed-esque" rounds makes a lot of sense. We're a SaaS (or perhaps DaaS company for the acronym inclined) that thinks similarly.<p>One question I'd love to get your perspective on - how did the capitalization raised by competitors such as Get Satisfaction impact your thinking (they've raised a lot more - we track this data). If more money helps acquire more customers more quickly ultimately helping you "own the market", did the idea of raising less ever seem like it could be disadvantageous over the long-term? If what competitors raised didn't impact your thinking at all, why not?<p>I ask because we've discussed the same question ourselves and so would love to hear your perspective.<p>And finally of course, congrats on the raise and on building a real business. We have your current round as a Series A and your last year's raise as Seed VC on CB Insights for what it's worth.

While there was a de-emphasis on valuation, there are many instances where a subsequent inside round is not a good thing. If the follow-on round is at the same terms as the prior, the dilution for employees and existing stake holders will take a bigger hit.<p>In the article, Rich mentions, they are getting the money at a 7x increase over the prior round. Great for them. It is not always the case.

Don't they usually call these rounds a second A round? (Ex. Series A-2)?