Checklist for Successfully Raising a Series A in 2024

At FOV Ventures , we're all about jumping in early—pre-seed or seed, and not a day later. Now that our portfolio is growing up, I've been diving into what it really takes to snag a Series A in Europe in this oh-so-joyful economic climate of 2024.

Here’s my quick checklist to help founders out. It’s not exhaustive, but hopefully it helps!

? Metrics to Focus On:

• Year-over-Year (YoY) Revenue Growth: Ensure you're achieving a minimum of 2x growth, ideally 3x or more.
• Net Dollar Retention (NDR): Aim for a minimum of 100% NDR. Anything over 130% is considered exceptional.
• Gross Margin: Maintain a minimum gross margin of 70% to align with industry standards.
• Customer Acquisition Cost (CAC) Payback: For SMB customers, target 6-12 months; for mid-market, 12-14 months; and for enterprise, 12-24 months.

? Team Quality:

• CEO Assessment: Investors will evaluate your strategic thinking, ability to attract talent, and execution skills.
• Leadership Team: Ensure your senior team reflects the CEO’s competence and has a proven track record.

? Go-to-Market (GTM) Strategy:

• Establish a repeatable, scalable sales process with at least one or two non-founder sales reps consistently meeting quotas.
• Demonstrate a clear sales motion with predictable conversion rates across the funnel.

? Product-Market Fit:

• Show clear product usage metrics and articulate how your product creates value for customers.
• Ensure that your product solves a significant problem and that you can demonstrate strong customer enthusiasm.

? Market Differentiation:

• Understand the competitive landscape and articulate a defensible positioning.
• Highlight unique product features and emphasize the strategic moat you are building over competitors.

? Valuation Strategy:

• Valuation should reflect a balance between current ARR multiples, market competition, and investor expectations.
• Aim to sell 15-25% of your company in a Series A round.

? Founder Shares:

• Selling a small portion of founder shares is increasingly accepted, provided the remaining equity is motivational and the primary capital drives business growth.

? Start Early:

• Assume 4-6 months for the fundraising process. Begin preparations early to secure the best terms and valuation.

That's it.

If I’ve missed anything, let me know, and I'll gladly expand the list and give you a shout-out. ??