So to lift seed and post-seed cash from VCs, it’s worthwhile to present traction.
What’s that? Roughly:
- Earlier than $1m ARR, rising 10%-15% a month
- Round $1m ARR, rising 8%-10% a month or so
- Round $10m ARR, ideally doubling
And so forth. Being on monitor to Triple Triple Double Double after $1m ARR, and rising quicker sooner than that.
However what for those who’ve been going by way of a tough patch?
VCs get it. They know start-ups take some time to really nail product-market match and extra. They know hypergrowth usually follows a brief or lengthy interval of iimited development.
So internet internet, what VCs wish to see is 3+ sturdy months of development in a row. Even when the prior 3-30 have been … sluggish. It’s OK.
The recommendation right here is straightforward, however many founders get it a bit mistaken. For those who’ve had a tough yr, after which one nice month of development — nicely, that’s not sufficient for VCs. However put collectively 3 sturdy months, and go fundraise arduous.
3 sturdy months a row is sufficient for VCs to imagine; That the following 30-300 months might be epic, too.