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Which Fundraising Round Should You Skip?

View from Seed

The reason is that b2b fundraising is largely driven by data and metrics, and pre-seed dollars usually don’t get you to many meaningful data points. Most series A’s in B2B require a minimum level of top line revenue and a minimum amount of historical data to prove retention and some sort of repeatable growth engine.

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What’s the Deal with Seed Funds Waiting for Traction?

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But for less well known founders, a series A requires pretty significant revenue, growth, and retention metrics. For very well known founders, a series A can happen well before traction. Because of this, there is a glut of companies out there that can’t quite get to a series A and are raising second or third seed rounds.

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An Alternative to Board Decks Some Seed VCs Actually Prefer

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A seed-stage mobile startup’s housekeeping section might look something like this: Section 3: Core Metrics. In doing so, a few core metrics inevitably emerge depending on the product and the model. So, for this section, list 3-5 metrics, along with relevant data points, charts, graphs, or tables.

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Slack S-1: Will ARPU Drive Long Term Value?

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You can see this both by looking at a cohort “layer cake” graph or by examining the net dollar retention. Slack’s net dollar retention rate is an incredibly impressive 143%. Slack’s net dollar retention rate is decreasing, but is still a long way from dropping below 100%. So Slack generated $1.43

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Pitch Deck Month: “Is It Working?” (aka the “Traction” Slide)

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For consumer companies this is usually around user acquisition, engagement, and retention. So post-revenue companies should think hard about what metrics they can show, beyond total revenue or revenue growth, which show not only an accelerating business but also one that is trending towards a highly durable and profitable one in the long run.

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Pitch Deck Month: Appendix Slides

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Investors want to know the critical thinking behind the inputs and value-drivers of the business, and how that results in the outputs on the critical metrics and finances. But the real significance of these figures is the exercise behind it.

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5 Questions VCs Never Answer, Answered by a VC | #BOSSOI

View from Seed

Here are some top-line metrics that I think are worth shooting for: For marketplace businesses: $5M-$10M in annual GMV run rate. In terms of other metrics, some ideas: At least 6 months of cohort data that shows solid retention over time and signals a strong LTV relative to CAC. For SaaS: At least $100K in MRR.

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