A Humbling Response from a VC

When can you expect to get an investment

Here was my question after a “No”:

Rachel,

out of curiosity, what’s a deal look like for you guys that you’d be interested in as it relates to MRR growth / deal size and valuation if you dont mind?

We grew 120% in April in Revenue and got a commitment from a venture group last week for 150k in the round. I’m looking for quantifiable milestones to achieve or to shoot for and any feedback is helpful to us. Thanks again.

And the response:

Hi Paul —

Congrats on the term sheet!

I get asked this question a lot. There’s no exact answer or magic formula. A couple of the deals we’ve done in the last two years have had >120K MRR, growing 20% month over month. It depends on the vertical, though (hardware companies don’t necessarily grow that way). The previous deals, depending on the team and product, have been $4-6M Series As.

Passionate first customers, experienced founders, the competitive market, and our existing understanding of a space all play into both valuation and deal size.

Hope this helps!

Rachel