PHASE | MILESTONES
Preseed | Product-market fit
Have you proven to yourself—and, more importantly, your customers—that your product successfully fills a real need in a market that is big enough to support your future growth?
Increase in number of users over time
High renewal rates/low churn
Steady stream of customer referrals
*40% Rule | at least 40% of surveyed users say they would be “very disappointed” without your product or service.
Seed | Monetization model
At this phase startup should:
be generating revenue
have low burn and churn rates
How you going to spend the Money?
What markets will you expand into?
How will you expand sales?
How will you retain and upsell existing clients?
Series A | Ready to Scale
2 year Revenue: $100K/month
Scale from ~$1M ARR to $10M ARR in five quarters or less
Scale to $50-$100M+ revenue within 5ish years
Do you have a clear customer acquisition strategy?
Per channel, what does it cost you to acquire a paying customer?
Will your CAC stay steady when your company loses its underdog appeal?
For every $1 spent marketing to potential customers, what is the return for your gross margin?