How much outside funding do companies at the pre-seed, seed, and series A level typically raise?
Q: How much outside funding do companies at the pre-seed, seed, and series A level typically raise? And what maturity level (or revenue markers) should the company be at to raise at different stages?
This will vary from startup to startup, but here are some rough milestones:
For Series A, the typical raise will be $5m – $10m with a revenue traction of $2m – $3m.
That being said, geographical location, type of business, business model, the current market, and other factors will all matter. Beyond just revenue, investors also want to see how the business is being derisked.
So just because a company hits certain traction marks doesn't mean it will be able to raise. Do research on what is expected of companies in your industry before you decide on a target raise amount.