- Persuade & Raise
- Posts
- ♞ VC Market Update Part 2
In partnership with
VC Market Update
On Monday I provided an overview of the current market trends and discussed how AI and a lack of Exits/IPOs is currently creating a VC market that is difficult to raise in.
Today, I want to provide you with some high-level details on what I’m seeing is currently required at the Pre-Seed, Seed and Series A stage of funding to raise capital.
Get your news where Silicon Valley gets its news 📰
The best investors need the information that matters, fast.
That’s why a lot of them (including investors from a16z, Bessemer, Founders Fund, and Sequoia) trust this free newsletter.
It’s a five minute-read every morning, and it gives readers the information they need ASAP so they can spend less time scrolling and more time doing.
Pre-seed Requirements
Product - At a minimum, the MVP needs to be built and launched.
Traction - At least some customers, normally paired with positive customer feedback and strong indications of product-market fit.
Revenue - $10k-50k
Financials - Raise $25,000-$1M on a SAFE. Investors get 7-20% equity on conversion.
Seed Requirements
Product - Built and functional. It should be used by many customers and has been iterated and improved on.
Traction - You should have evidence of product and market fit and be growing at least 10% month-over-month, with the limitation on your growth being team size, spending, marketing, etc., not the market or customers.
Revenue - $50k-$250k
Financials - Raise $1M-$10M, selling 20-30% of your company.
Series A Requirements
Product - Should be at the same standard as expected from any major tech company.
Traction - Should be growing at least 25% month-over-month with no signs of slowing down and at least one marketing channel with a positive ROI that you can funnel money into to continue supporting your growth.
Revenue - $250k+
Financials - Raise $10M-$50M, selling 12-20% of your company.
Do you plan your raise annoucement? |
Free Notion and Unlimited AI
Thousands of startups use Notion as a connected workspace to create and share docs, take notes, manage projects, and organize knowledge—all in one place. We’re offering 3 months of new Plus plans + unlimited AI (worth up to $3,000)!To redeem the Notion for Startups offer:
Submit an application using our custom link and select Beehiiv on the partner list.
Include our partner key, STARTUP4110P67801.
Are you looking to grow your business? Here is how I can help:
📢 Promote your startup to 2,000+ VCs including investors from a16z, YC, Techstars, Rarebreed, Sequoia and more.
📱 Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)
📺 Access FundraiseOS, the ultimate fundraising course with video lessons and practical worksheets helping with everything from deciding how much to raise to understanding a term sheet.
💸 Promote your product or service to 100,000+ entrepreneurs.
🌐 Connect with me on LinkedIn or X (formerly Twitter) to get access to new content about startups, fundraising, venture capital and more every day.
Onwards and Upwards,
An entirely new way to present ideas
Gamma’s AI creates beautiful presentations, websites, and more. No design or coding skills required. Try it free today.
Learn AI in 5 Minutes a Day
AI Tool Report is one of the fastest-growing and most respected newsletters in the world, with over 550,000 readers from companies like OpenAI, Nvidia, Meta, Microsoft, and more.
Our research team spends hundreds of hours a week summarizing the latest news, and finding you the best opportunities to save time and earn more using AI.