If you have ever wondered what series A is and how it differs from other investment rounds, this informative article is for you. Series A funding is the first round of significant investment in the company. It is not limited to any capital, but $21 million is the current index in 2021. The standard deviation or the typical range of series A stock is from $17 to $25 million.
To establish a minimum viable product, most founders traditionally raise money from relatives, friends, credit cards, or personal savings. Some succeed to find angel investors at the seed funding stage we have already talked about in this article. A quick reminder: seed round is when your startup is in its early stage (or idea stage) and needs high net worth investors up to $40 million to gain momentum. For this stage, you need a promising business strategy, a team of people in love with the idea, and professional presentation design service to represent your vision to investors.
Series A Funding Meaning
After your business has accelerated, you do not need so much money. If a company raises a series A round, it means their business plan and initial results have probably gone through some serious scrutiny and moves to series B. It also demonstrates that the company has shown a real potential to be able to tap into a big market.
VCs and ‘super’ angels are commonly associated with series A investment. If you want to meet investors and benefit from it, prepare and research: know what they’ve invested in, what he/she cares about, etc. To capture their attention in the first minutes to get series A investing, we recommend simplifying your pitch all the time. We totally believe that you are working on something fascinating, but many fail to talk boringly about it. Do not act like this 🙂 And build the story compelling from the very beginning.
To get a series A funding, you need:
- Investor presentation.
- Financial plan.
- Fundraising strategy.
- Cap table.
- Term sheet.
- Due diligence.
- Shareholder’s agreement.
- Corporate governance.
Series A Funding Objectives
The main objective of the series A investment is to scale your product. For long-term profit, you need plans, milestones, and pitch deck presentations. Sounds quite general, right? We agree, and we define the next more precise series A startup goals:
✓ cover up salaries of people involved;
✓ attract new talents;
✓ finalize business model as easy to scale and adapt rapidly;
✓ ensure you have a smooth pitch and compelling narrative;
✓ practice networking to get in contact with the best investors for future rounds;
✓ make additional market research to ensure your product fits in;
✓ check all legal documentation complies with requirements;
✓ mitigate risks that are highest at this round;
✓ reach milestones in product development;
✓ finalize product/service to introduce into the market.
Technology innovators and founders that invent the future are ubiquitous. The competition is high but possible to resist. If you believe in your idea and understand how to analyze the market of the future, you will be ahead of everyone.
It can be done! And if you’ve done everything correctly, you will need the next article about series B funding.