How to Prepare Your Startup for Series A Funding
Seed funding, personal savings and loans from family and friends have gotten you this far, but it’s time to take your company to the next stage. Which means one thing, it’s time to start raising a Series A.
Here are some points to keep in mind and demonstrate to an investor while you are looking to acquire Series A funding.
- Demonstrate that you have systems in place to manage your customer, employee and user data and to provide you with insights that you can use to make better decisions and gain further traction in your industry.
- Ensure that you have product-market fit. Employ beta testing, free trials, webinars etc, to acquire feedback and ensure that you are making a product that customers are willing to pay for.
- Your cost to acquire a customer should be lower than the revenue made from them. You want CLTV : CAC > 3.
- Have a strategic plan for developing more growth related to your revenue, team size and orders/customers being served.
To keep your business on track and accountable for investors you need a system that is fully integrated, stores all of your data and provides actionable insights to enable swift decision making and strategic improvement.
Originally published Mar 7, 2019, updated Mar 23, 2020