Resilient

11Raising a Series A

Get comfortable with the unknown.

Source: Lisa Warner Wardell

If, for the most part, you've proven you are the one to build this company, your insight and knowledge is deep enough that you might be able to transform the industry, you've proven that you can get others to back you (and stay with you), and your value proposition has been defended by customers who have used your product, then you might be ready to raise a Series A round of financing.

Series A rounds are generally geared toward early-stage, private companies. The size of the round can be very different. Similar to the drastic changes we've seen in seed round sizes, the same can be said for Series A round sizes, and they can range from 4 million to tens of millions of dollars. For many, this might also be the first institutional round of capital brought into your business. If you are enamored with the headlines, then you might think that the more money you raise the better, but this isn't the case. There are many factors you will want to take into consideration, one being your valuation and the other how much you need to get you to your next major milestone that will trigger your next round of funding. Before you approach a VC (or respond to one, if one has approached you), it's important to do your research. It's no secret that founders talk, but other investors talk too. I've asked founders as well as other VCs their thoughts on investors, and both have been very honest with me.

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