$1.5M-$2M ARR - Series A
What is the revenue number you have to hit to raise a Series A (in the US)?
The rule of thumb I had been told, back in 2019, was $1M but that number seem to be moving upward today, which makes sense. So what does the market say? What is the $ number you need to show to investors, for them to say "that's reasonable"? According to various sources of data and conversations available today, the answer seems to be.....
$1.5M-2M ARR
Again, these are rule of thumb. Useful but not written in stone.
Here's some sources.
- 'the mean ARR requirement was $1.4M by Embroker.(2023)
- 'In fact, Minimum of $1.5B ARR is a number I've heard on an anecdotal basis in many conversations' by Lars Kamp (2020)
- 'has at least $2M in ARR' by TechCrunch (2023 Jun)
- '$1M-5M' by Christoph Janz of Point Nine (2023)
The inspiration for this post comes from Christoph's presentation from SaaStr Annual 2023. I highly recommend you watch