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?
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.
All money is green.