Series A Readiness Checklist: Are You Ready to Raise?

Series A is a different game than seed. Here's how to know if you're ready.

The Quick Test

Answer honestly:

• Do you have product-market fit? (Real, not imagined)
• Can you articulate your growth engine?
• Is your team ready to scale 3-5x?
• Do you have 12-18 months of runway left?

If any answer is "no" or "maybe," you're probably not ready.

Metrics Benchmarks

Revenue & Growth

| Metric | Minimum | Strong | Exceptional | |--------|---------|--------|-------------| | ARR | $1M+ | $2-3M | $5M+ | | MoM Growth | 10%+ | 15%+ | 20%+ | | YoY Growth | 2x | 3x | 4x+ |

Unit Economics

| Metric | Minimum | Strong | Exceptional | |--------|---------|--------|-------------| | LTV:CAC | 3:1 | 4:1 | 5:1+ | | Gross Margin | 60%+ | 70%+ | 80%+ | | Net Revenue Retention | 100%+ | 110%+ | 120%+ | | CAC Payback | Under 18 mo | Under 12 mo | Under 9 mo |

Engagement

| Metric | What It Shows | |--------|---------------| | DAU/MAU | User stickiness (40%+ is strong) | | Retention | D30 retention above 20% | | NPS | Customer satisfaction (50+ is strong) |

Product Requirements

Product-Market Fit Signals

You have PMF if:

• Customers actively refer others
• Usage grows without prompting
• Customers would be "very disappointed" if product disappeared (40%+ on Sean Ellis test)
• Sales cycles are shortening
• Inbound interest exceeds outbound

You don't have PMF if:

• Heavy discounting to close deals
• High churn after initial period
• Customers use it but don't love it
• You're still pivoting core value prop

Technical Readiness

• [ ] Architecture can handle 10x current load
• [ ] CI/CD pipeline is automated
• [ ] Security basics (SOC 2 prep started)
• [ ] Monitoring and alerting in place
• [ ] Technical debt is manageable

Team Requirements

Current Team

| Role | Requirement | |------|-------------| | CEO | Full-time, committed | | CTO/Tech Lead | Strong technical leadership | | Key Engineers | 2-3 senior ICs minimum | | Customer Success | Someone owns retention |

Hiring Plan

VCs want to see you can deploy capital effectively:

• Clear org chart for next 12-18 months
• Identified key hires (head of sales, marketing, etc.)
• Compensation philosophy documented
• Equity plan with room for new hires

Team Gaps to Address

Common gaps that concern VCs:

1. No sales leader - Who will build the sales machine?
2. Founder doing everything - Can you delegate?
3. No finance/ops - Who manages the money?
4. Weak technical bench - Can you ship faster?

Market Requirements

Market Size

| Category | Expectation | |----------|-------------| | TAM | $1B+ (venture scale) | | SAM | $100M+ (addressable now) | | SOM | $10M+ (realistic capture) |

Competitive Position

Document clearly:

• Who are the top 3-5 competitors?
• What's your defensible moat?
• Why now? What changed?
• Why you? Team-market fit?

Financial Readiness

Current State

• [ ] Clean cap table
• [ ] 409A valuation current
• [ ] Financials organized (P&L, balance sheet, cash flow)
• [ ] Clear understanding of burn rate
• [ ] 12+ months runway remaining

Use of Funds

Be specific about deployment:

| Category | Typical Allocation | |----------|-------------------| | Engineering | 40-50% | | Sales & Marketing | 30-40% | | G&A | 10-20% |

Financial Model

• [ ] 3-year projection built
• [ ] Key assumptions documented
• [ ] Scenario analysis (base, upside, downside)
• [ ] Path to profitability shown (even if distant)

Data Room Checklist

Legal Documents

• [ ] Certificate of incorporation
• [ ] Bylaws
• [ ] Board meeting minutes
• [ ] Stock option plan
• [ ] IP assignments from all employees/contractors
• [ ] Key contracts (customers, vendors)

Financial Documents

• [ ] Historical financials (monthly)
• [ ] Current cap table
• [ ] 409A valuation
• [ ] Financial model with projections
• [ ] Bank statements

Company Documents

• [ ] Pitch deck
• [ ] Product demo or screenshots
• [ ] Customer references (3-5 ready to talk)
• [ ] Org chart
• [ ] Hiring plan

Timeline Planning

Typical Series A Process

| Phase | Duration | |-------|----------| | Preparation | 4-8 weeks | | Active fundraising | 8-12 weeks | | Due diligence | 2-4 weeks | | Closing | 2-4 weeks | | Total | 4-7 months |

When to Start

Start preparing 6 months before you need the money.

If you have 12 months runway:

• Month 1-2: Prep materials, optimize metrics
• Month 3-5: Active fundraising
• Month 6-7: Close round

Never start fundraising with less than 6 months runway.

Red Flags That Delay Rounds

Metrics Red Flags

• Declining growth rate
• Increasing churn
• Negative unit economics
• Stagnant engagement

Team Red Flags

• Recent co-founder departure
• Key employee turnover
• Founder burnout visible
• Gaps in critical roles

Market Red Flags

• Unclear competitive differentiation
• Market timing concerns
• Regulatory uncertainty
• Customer concentration (one customer over 30% revenue)

Self-Assessment Scorecard

Rate yourself 1-5 on each:

| Category | Score (1-5) | |----------|-------------| | Revenue metrics | ___ | | Unit economics | ___ | | Product-market fit | ___ | | Team completeness | ___ | | Market opportunity | ___ | | Financial organization | ___ | | Data room readiness | ___ |

Scoring:

• 28-35: Strong position for Series A
• 21-27: Good but address gaps
• 14-20: Not ready yet, focus on fundamentals
• Under 14: Too early for Series A

What to Do If You're Not Ready

Focus on Fundamentals

1. Improve metrics - Growth and retention trump everything
2. Extend runway - Cut burn, bridge if needed
3. Fill team gaps - Hire key roles
4. Build proof points - Logos, case studies, references

Alternative Paths

If Series A isn't right yet:

• Seed extension - More seed capital to reach milestones
• Revenue-based financing - Non-dilutive growth capital
• Strategic investment - Corporate investors for validation
• Bootstrap longer - Reach profitability, raise from strength

Calculate Your Readiness

Use our tools to assess:

• Runway Calculator - How much time do you have?
• Unit Economics - Are your economics venture-scale?
• Dilution Simulator - Model your Series A terms

Key Takeaways

1. Metrics matter most - $1M+ ARR, strong growth, good unit economics
2. PMF is non-negotiable - Don't raise without it
3. Team must be ready to scale - Hiring plan is critical
4. Prepare early - 6 months before you need money
5. Know your gaps - And have a plan to address them

Related Reading:

• Pre-Seed Funding Guide
• Seed Round Checklist
• Startup Valuation Methods