How To Raise a Series A
Raising a Series A funding round in SaaS is all about showing the math that proves you can raise a Series B.
500% YoY growth? 130% Net dollar retention? Huge TAM? All good - but it literally doesn't matter how well you've done in the past.
VC funding is a game of telephone - all that matters is whether your VC partner believes that you will *for sure* raise a Series B and beyond.
Angel rounds and Seed are all narrative. At about Series A it becomes more 'excel'. You need to translate your business into a math equation that shows how you can turn funding into about $100M of ARR or more.
1 outbound sales rep costs $125K a year, but generates $400K in ARR.
Hire 50, for 5 years = $37.5M in cost and $100M ARR. Add another $37.5M for development, customer success and overhead. And another $37.5M for 'shit happens'
= $15M Series A, $40M Series B and $75M Series B
You need to show this math, with conservative assumptions - all the way to the end zone.
Check out the video below: