Funding · Series A+
Series A Funding: How to Raise $8M–$20M
Series A is a metrics round. Story matters, but numbers close the deal. Investors underwrite the next 18 months of growth against a specific set of benchmarks — this playbook shows exactly what they measure and how to prepare.
Series A rounds are typically $8M–$20M at $40M–$100M post-money, with 15–25% dilution. Investors expect proven product-market fit: $1M–$3M ARR growing 3× year-over-year, healthy net revenue retention, and a repeatable go-to-market engine.
$8M–$20M
15–25%
3–6 months
Best for
- SaaS companies at $1M–$3M ARR with strong retention.
- Consumer products with >1M MAUs and >30% monthly retention.
- Marketplaces with liquid geographies and rising take rate.
Not for
- Companies still searching for product-market fit — capital won't fix positioning.
- Businesses that need $2M — raise a seed extension instead.
- Founders unwilling to build a management layer under them.
How it works
- Prepare a data room: metrics, cohorts, cap table, contracts, model.
- Rehearse the metric story until you can defend every number.
- Target 8–12 lead-quality Series A partners with thesis fit.
- Run structured first meetings, then partner meetings, then a lead-driven diligence sprint.
- Get a term sheet, negotiate board composition and pro-rata rights, then close with follow-ons.
Key metrics
$1M–$3M+
$1M is possible with exceptional efficiency; median is closer to $2M.
3×+ YoY
Below 2× makes Series A very hard.
>100%
Above 120% is Series A gold.
$40M–$100M
Category heat and efficiency drive the range.
Investor expectations
3×+ year-over-year revenue growth with a plausible path to another 3× next year.
>100% net revenue retention (SaaS) or category-leading D30 retention (consumer).
Magic number > 0.75, CAC payback < 18 months, LTV/CAC > 3×.
A CEO who has hired execs and a plausible bench for the next 18 months.
Pros
- Real capital to build a team and category presence.
- Institutional board partner accelerates decision quality.
- Follow-on signal helps future rounds.
Cons
- Fundraise consumes 3–6 months of founder time.
- Board dynamics get more formal.
- Higher expectations on operational discipline.
Frequently asked questions
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