Metrics to Raise a Series A

Continuing with the metrics theme from yesterday’s post Most Metrics Don’t Matter at the Beginning, a logical follow-up question is “what are the ideal metrics to raise a Series A?” EquityZen has a good post from last year on just this topic: The Metrics Required for Raising a Series A Round. Here are the key metrics to raise a Series A for each type of startup from the post:

  • Ecommerce – $12 million annual run rate
  • Consumer App – 50,000 daily active users with 25% month-over-month growth
  • SaaS – $1 million annual run rate and 100% year-over-year revenue growth
  • Marketplace – $12 million gross market volume with 20% month-over-month growth

The next time an entrepreneur says they’re going to raise a Series A, ask if they have the appropriate metrics based on their type of business.

What else? What are some other thoughts on the metrics to raise a Series A round of financing?

5 thoughts on “Metrics to Raise a Series A

    1. For the seed stage, $100k of ARR is typically the minimum unless there’s already some prior relationship (e.g. friend, family, etc.)

  1. Hello David, for maketplace, when you mean $12 million gross market volume, you are meaning it annually or per month? Secondly sorry for the noob question. What is Gross Market Volume? I have heard about Gross Merchandise Volume/Value but not this. Can you please explain?

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