Series A funding

Let's look at what goes into raising a Series A funding round for your startup!

Congratulations! Your tech startup has completed the seed round of fundraising and has shown significant growth potential. As you continue to develop and scale your business, you may need additional funds to fuel your ambitious vision. This is where the Series A fundraising round comes into play. In this blog, we'll explore the ins and outs of the Series A round, discuss its significance for tech startups, and provide some tips to help you navigate this crucial fundraising stage.

Understanding the Series A Round: The Series A fundraising round is the second official financing round and is often considered the first large-scale round for startups. It typically follows the seed round and aims to raise substantial capital to support further growth and expansion. According to statistics, the average amount raised during Series A in 2020 was around $16 million in the US. However, it's important to note that reaching the Series A round is a significant achievement, as only a tiny fraction of startups make it past the seed stage.

Preparing for Series A: Before embarking on the Series A fundraising journey, ensuring your startup is ready for this stage is essential. Here are some indicators that your business may be prepared:

  • Clear Business Plan: You have a well-defined plan outlining how you will utilize the funds raised during the Series A round to achieve specific milestones and drive growth.
  • Growing Customer Base: You can demonstrate a substantial and expanding customer base, indicating market demand and validating your product or service.
  • Seeking Expertise: Beyond funding, you seek investors who can bring their expertise, connections, and industry knowledge to help your business succeed.
  • Open to Advice: You are ready to welcome outside members to your team who will provide regular guidance, check-ins, and valuable suggestions to support your growth trajectory.
  • Solid Team and Company Culture: You have assembled a talented team with the necessary skills and experience and fostered a positive and inclusive company culture that attracts and retains top talent.
  • Networking and Pitching: Networking becomes crucial when you're ready to kickstart the Series A fundraising process. Building relationships with potential investors and venture capitalists is critical to securing funds. Attend industry events, join networking groups, leverage online platforms, and reach out directly to investors who align with your industry and goals.

When presenting your pitches, remember these key elements:

Updated Pitch Deck: Keep your pitch deck up-to-date, highlighting recent achievements and the growth your business has experienced since the seed round.

Personal Story: Share your journey and passion for your startup. Investors want to connect with the visionary leader behind the business.

Competitive Edge: Clearly articulate how your solution outshines competitors, supported by thorough market research and a deep understanding of your industry landscape.

Due Diligence: Be prepared with all the necessary due diligence forms and paperwork to streamline the funding process and demonstrate professionalism. We have created a blog and a full-blown checklist for our startup founders to shine through due diligence.

Seeking Guidance: Remember to appreciate the power of learning from those who have already been through the Series A fundraising journey. Seek advice from successful founders who have raised their Series A rounds and tap into their insights and experiences. Startup incubators and accelerators can also provide invaluable mentorship and guidance during this critical phase.

Partnering with Arbo (wink wink): We understand the challenges of raising a successful Series A round at Arbo and have helped 100s of startups go through due diligence. Our CFO services and accounting platform combined are designed to help founders like you streamline their financials and focus on what truly matters—building and growing your tech startup. Contact us and discover how we can support your fundraising efforts.

Securing funds during the Series A fundraising round is a significant milestone for any tech startup. By leveraging a solid business plan, a growing customer base, and the expertise of investors, you can position your startup for success. Networking, delivering compelling pitches, and being prepared with due diligence paperwork are essential steps to take during this process. Remember to seek guidance from experienced founders and consider partnering with Arbo to streamline your financial operations. With careful preparation, determination, and the proper support, your tech startup can secure the Series A funding needed to propel it to new heights in the competitive tech landscape. Good luck on your fundraising journey!

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