The Series A gap is real: only about 30% of seed-funded startups successfully raise a Series A. The bar has risen significantly -- most Series A investors now expect $1-2M in ARR, strong retention metrics, and a clear path to market leadership. Here is how to prepare.
The Metrics Bar
Series A investors typically look for: $1-2M+ ARR (or $80-150K+ MRR), Month-over-month growth of 10-15%, Net revenue retention above 100% (ideally 120%+), Gross margins above 70%, and a clear, repeatable customer acquisition process. If you are below these thresholds, focus on hitting them before starting the fundraising process.
Building the Narrative
Your seed story was about potential. Your Series A story is about proof. You need to demonstrate: product-market fit with data (retention, NPS, organic growth), a repeatable go-to-market motion (not just one-off deals), unit economics that work (LTV/CAC ratio above 3:1), and a large enough market to justify $100M+ outcomes.
The Data Room
Prepare your data room before approaching investors: financial model with 24-month projections, monthly financial statements, cap table (fully updated), key contracts and customer list, team org chart and hiring plan, and product roadmap. Having this ready signals professionalism and accelerates due diligence.
Timing the Raise
Start building relationships with Series A investors 6-9 months before you plan to raise. Have informal conversations, share your monthly updates, and ask for advice. When you are ready to raise, these relationships convert faster than cold outreach.
The Process
Series A fundraising typically takes 4-6 months. The process is more rigorous than seed: expect detailed financial due diligence, customer reference calls, technical architecture reviews, and multiple partner meetings at each firm. Prepare for this intensity.
