What you need to raise a series A In today’s funding climate !

Product Market Fit. You want very clear validation from the market that your product is a fit for the market .

Product Market Fit differs by company and industry so look for comparables of companies that have similar business and go-to-market models in order to gauge your KPIs.

The ultimate product market fit

Revenue this is your best bet of clearly demonstrating product market fit.

Where is the bar today for Series A? At least $1M in ARR (annual recurring revenue) minimum, $2m — $3M + even better, if you’ve gotten to that level in 12 to 18 months and have a 2x — 3x year over year growth rate, this will excite investors.

Growth rate

Growth. + revenue is the whole story. Flat growth year over year (YOY) is a disqualification for a series A among top tier investors . 2x growth YOY is good. 3x+ growth YOY is investable in a large growing market .

Because of mega funds like Softbank. you will use a large proportion of your Series A capital in order to grow revenue, your Lead investor. will want to know that you know how and where to use the capital and that it won’t just be frittered away on tests. Come in with data and a strong story that inspires confidence on the instrumentation of your business.

The new game is fast market expansion, which means it’s a capital competition game.