Caya: What is the sweet spot when raising a Series A?

Andrew:Series A it's different. You can raise a little bit on the dream, you could raise on the potential. By the time you're getting for A around a lot of the investors are looking for a $1M-$3M annual recurring revenue, and also the slope of the line, right?


Getting to 1 million in a year is a heck of a lot different than getting to 1 million in 3 years. Each investor is a little different, and that's actually one of the things when our startups go in and meet with the investors that we connect them to on the investor Roadshow.

We train them to ask that pointed question so if a VC says:  "I really love what you're working on but you're little early", that either means, "I really love what you're working on but you're a little early" or "there's no fucking way I'm interested alright, please go away".

So, we trained to say: "okay I'm really glad to hear that, you're interested. Just tell me, in your mind what are the one or two metrics that, you know, so now they are ready!"

Whether it's monthly active users or annual recurring revenue, or whatever other metrics they think about. So, when an investor actually gives you a number, even if it's a range, it's
arguably sincere. If they kind of hem a haw, they don't have a number in mind, it's usually just a soft no. So those metrics vary from industry to industry but usually for an A round, what they are looking for is "Beyond Product Market-Fit"  they want to show, that you can actually repeat the sales process.


What is the sweet spot when raising a Series A?

Jan 4, 2018
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