Best Practices for Series A Fundraising

Best Practices for Series A Fundraising

March 18, 2025 by investor

Fundraising for Series A is fundamentally different from fundraising for a seed round.

In the seed round, the goal is to convince the investor you can sell it. 

In the series A round the goal is to convince the investor you can grow the business.

Here are some best practices for running a Series A fundraise.

Show how the business is up and running with a solid growth trajectory.

Demonstrate that you have achieved product market fit and can increase sales.

Raise for sales and marketing and not more product development.

Focus on your core product and avoid expanding to other products.

Show your unit economics to show the profitability of your core model.

Show how funds raised will directly increase sales.

The other departments in the business, customer service, support, finance, etc, are up and running, albeit on a small scale.

Show your repeatable, predictable sales model from start to finish.

Include the steps you take to generate a lead, qualify it, and close the sale.

Calculate the ratio of leads to customers and average sales price.

Set it up so you can plug in a forecasted sales number, and the model shows how many leads you must generate, qualify, and close.

Demonstrate to the investor that you have the sales machine figured out.

 

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.

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