A Series A funding round is a critical stage of funding for a company, and generally occurs when you are looking to raise $2 to $10 million. Again, these are still typically higher risk/higher reward investments because the company can still be in the startup or product development stage. The first series of stock issued by a company after common stock options (offered to founders, employees, etc.) occurs during a Series A round.
These deals are more traditional, and involve early stage Venture Capitalists (remember: you generally pitch to angels when you are raising under $1 million, VCs when you are further along and want to raise more).
VCs are investing other people’s money in several companies, so they look for companies with and a proven track record. Angel investors typically invest their own money and are prior entrepreneurs or high net worth individuals.
Series A funding sets precedence for later rounds. This is where you have to start thinking about the kinds of partners you want on your company’s board. It is highly recommended that you get a corporate attorney to help with all of the details and paperwork and to help put together a term sheet that everyone agrees on.