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- ♞ VC Market Update Part 2
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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.
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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.
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