Okay founders, if you think Series A is just about showing bigger traction numbers than your seed round, you’re in for a rude awakening. I’ve been on both sides of the table, and the questions investors are asking change dramatically. It’s a whole new level of scrutiny.
Beyond the Hockey Stick Growth Chart
Yes, showing a strong upward curve is still important. But here’s what else Series A investors want to see you’ve figured out:
- Repeatable, Profitable Acquisition: Have you cracked your customer acquisition code? Can you pour in $X and reliably get $X + Profit out, across different channels? Too many startups fudge the numbers here, hoping investors won’t notice.
- The Moat: You’ve got early users, that’s great. Now, what’s stopping a bigger company from copying you and crushing you with their resources? This is where defensible IP, network effects, or even just a super-niche focus comes into play.
- Your “Scaling Team”: Who have you hired since your seed round? Series A is often about funding that team expansion, so don’t just show titles on a slide – show why these folks are uniquely qualified to take you to the next level.
- The Unsexy Foundations: Do you have systems for basic stuff like financial reporting, HR, etc.? Messy ops sink fast-growing companies fast, and smart investors can smell it a mile away.
Red Flags That Will Tank Your Pitch
Even with strong metrics, here’s how to quickly get yourself shown the door:
- Valuations Out of Whack: Be realistic, and know what comparable startups are getting funded at. Overconfidence here kills deals fast, as it signals you’ll be difficult to negotiate with.
- Ignoring the Market: Is your growth projection based off capturing, like, 50% of a niche market within 2 years? Reality check time. Investors want to see you understand the broader competitive landscape.
- Fuzzy “Use of Funds”: Saying you’ll “hire more people” isn’t enough. Have a detailed plan, even if it changes a bit, showing you understand the true costs of scaling specific functions.
One Last Thing
Build the relationship BEFORE you need the money. Series A investors take their time. Get to know them at industry events, provide value even without asking directly for funding, and it’ll pay off when you do pitch. Hustle matters, but so does playing the long game.
What’s the BIGGEST shift you had to make in going from seed to Series A prep? Let’s all learn from each other in the comments!
