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What level of traction is expected of companies aiming for Series A?

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Written by Claire Rosenfeld
Updated over 10 months ago

Every company is different — there’s no hard rule. The generic advice is $80k MRR with m/m growth at least at 10% (and ideally 20%). - Ravi

The expected traction can vary significantly depending on the industry, but here are some general guidelines for enterprise companies:

  1. Revenue: For non-deep tech companies, at least $3M in annual recurring revenue (ARR) is often expected.

  2. Product-Market Fit: Companies should show clear signs of product-market fit, with growth driven primarily by inbound customers rather than outbound sales efforts.

  3. Financials: A burn multiple of 1.5x or less is generally seen as a healthy benchmark.

  4. Customer Base: It’s important to have at least one big brand, referenceable customer with a 6-figure contract, along with around 30 other paying customers.

Are there different expectations for industries like healthcare, deep tech, or biotech/life sciences?

Yes, these industries are often evaluated differently. The focus is more on the commercial readiness of the product rather than specific revenue targets. Additionally, there is often a need to reallocate R&D costs to prioritize talent acquisition and sales efforts.

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