Funding winter is NOT the reason why startups are not doing Series A rounds

Funding winter is NOT the reason why startups are not doing Series A rounds.

There’s no doubt that liquidity in the market has reduced.

But around 100 startups raised over $1 Bn in March ‘2023. The right startups still have access to money.

Is your startup really ready for Series A funding?

Here are 3 major points startups need to have before they go for a series A round

1) Customers. Not just numbers on a sheet but HAPPY customers.

You need to prove this before you can secure a round.

How do you prove it? 
Use metrics, testimonials, surveys or even your rating on the App Stores.

Prove that you have highly engaged and HAPPY customers to get that series A money!

2) Is your product/service scalable without big hurdles?

Investors in the Series A round are looking for revenue projections that excite them.

Show that your company is a scalable/repeatable factory that can mint money if funds are deployed.

What if your startup faces issues at scale? Point them out in your pitch and also keep solutions ready.

3) Do you have a ‘scalable’ customer segment?

You got a great product. You got a target customer segment. You got a great initial response.

Awesome! That’s half the battle won. Yes ONLY half.

Is your target segment scalable? Is it big enough to rope in large revenues or do you have to expand your target segment?

Answer these questions before you step in for your Series A.

Quick Recap!

1) Prove that you have HAPPY customers.
2) Show scalability and repeatability 
3) Show a big enough target customer segment

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