When a top-tier VC firm passes on series B but someone else invests, does it mean the company is likely dying and failing to meet critical milestones?

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JASON LEMKIN

Of course not.

However, it probably does mean the company is not a “cookie cutter” success story, i.e.:

  • Hot space
  • Strong CEO and management team, ideally with right background
  • At $8m-$10m+ ARR or more … growing 100%+ year over year
  • Defensible technology / brand
  • Leader in space, or potential to be leader

You need all these to raise a $10m-$50m Series B from a top, “traditional” Series B VC firm.

#3 in the space? Growing 70%, but not 110%? Weak management team? Overinvested space? Unpopular space? Good traction, but weak technology?

Don’t expect a Series B from a Traditional Top Series B VC.

It’s OK.

All money is green.

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Published on June 1, 2017
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