Complete Definition
Series A is typically the first large institutional venture capital round. It's raised after demonstrating product-market fit to scale customer acquisition and build out the team.
Series A Characteristics
Amount
$5,000,000 - $20,000,000 typically $10-15M is common
Sources
- Traditional VC firms - Corporate venture capital - Growth-focused seed funds
What's Required
- Clear product-market fit - $1-2M+ ARR (SaaS) or equivalent traction - Strong retention/engagement metrics - Repeatable customer acquisition - Clear path to scale - Experienced team
Use of Funds
- Scale sales and marketing - Expand product/engineering team - Enter new markets/segments - Build company infrastructure - 24-36 months runway
Series A Expectations
- Grow 2-3x year-over-year minimum - Improve unit economics - Expand team significantly - Prepare for Series B in 18-24 months
Series A Valuation
Pre-money valuations typically: - $15M - $30M for most - $30M - $50M for strong performers - $50M+ for exceptional cases
The Series A "Gap"
Many startups raise seed but fail to qualify for Series A. This "Series A crunch" requires: - Strong metrics - Differentiated story - Right investor fit