Dear SaaStr: How Many Good Months Do I Need in a Row to Raise Venture Capital?
Ideally, at least 4 good months in a row before you try to raise a Seed / Late Seed Round.
And at least 2 good quarters for a Series A round. And more for later rounds. Growth investors are going to want to see a full strong year or close to it after a slow one before they invest.
4 Good Months in a Row, I'm In
3 Good Months in a Row, I might
2 Good Months in a Row, I hope
1 Good Month in a Row, I dunno
0 Good Months in a Row, wtf
— Jason ✨Be Kind✨ Lemkin (@jasonlk) May 9, 2023
Earlier stage VCs expect that things often take a while until they take off. A few quarters, sometimes, even a few years. So they are OK if on the path to the first few million in ARR, they are some rough months. But they do need to see things starting to come together, usually, before investing millions.
How many months of great growth, i.e. 10%+ a month or more in earlier days? 4-in-a-row sort of proves it, 3 is sometimes is enough, and 2 isn’t really quite a trend … yet.
My advice: if you can, put at least 3-4 months together in a row before raising a seed / late seed round.