How do I prepare for Series A funding?

The road to Series A

1. Step 1: Write a business plan. Write a business plan with a financial forecast that’s grounded in your performance to date.
2. Step 2: Identify suitable investors. Identify the investors who:
3. Step 3: Get paperwork in order.
4. Step 4: Reach out to investors.
5. Step 5: Narrow down the list.
6. Step 6: Engage lawyers.

What is Series A investing?

Series A financing refers to an investment in a privately-held, start-up company after it has shown progress in building its business model and demonstrates the potential to grow and generate revenue.

What is considered good series A funding?

Typically, a company in Series A funding sets a goal of raising between $2 – $15 million dollars. This number can vary across industries.

What is Series A fund raising?

A series A round (also known as series A financing or series A investment) is the name typically given to a company’s first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exchange for their investment.

What is series capital?

Series A funding, (also known as Series A financing or Series A investment) means the first venture capital funding for a startup. The Series A funding round follows a startup company’s seed round and precedes the Series B Funding round. ” Series A” refers to the class of preferred stock sold.

How do I reach an investor?

Here are five tricks I found useful in getting meetings with the right people.

1. Build an AngelList Profile.
2. Create a Strategic List of Investors You’d Like to Meet With.
3. Comb Your Networks.
4. Thoughtfully Craft Your Own Introduction.
5. Give Investors a Reason to Reach Out to You.

How much should I raise in Series A?

As of 2019, the average Series A funding amount is $13 million. The average Series A startup valuation in 2019 is $22 million.

Is series a early stage?

Essentially, the series A round is the second stage of startup financing and the first stage of venture capital financing. Similar to seed financing. Seed financing is a type of equity-based financing.

What is series funding and how does it work?

Series funding allows entrepreneurs to fulfil their dream of taking their company from the garage to an IPO. However, approaching investors and closing a round is never an easy task, especially if you have never raised from external investors or VC firms.

What is series a venture capital financing?

Series A stage is the first round of venture capital financing. By now, the startup must have a developed product and a customer base with consistent revenue flow. Now it’s time for them to opt for series A funding and optimize their value offerings. This is an ideal opportunity that allows startups to scale themselves across different markets.

Who are the most common pre-series investors?

The most common pre-series investors are: “Ask people who know you already. Friends, past co-workers, family, etc. That is your best and almost only chance. Failing that ask people who are from the industry and have a lot of money.

What is the difference between a series and a fundraising round?

The primary differences between each fundraising round (and Series) are the maturity level of the company, the level of risk for investors and the purpose of raising capital.