Revenue Doesn’t Matter(medium.com)
medium.com
Revenue Doesn’t Matter
https://medium.com/i-m-h-o/29e052eb4b4f
5 comments
Wow, the top post in that quora topic says $2M in ARR for an unproven team before they get any VC money. That seems kinda high to me. I feel like the team's proven themselves after a couple hundred grand of annual revenue.
"A couple hundred grand" is what a freelancer who charges well makes in a year.
Yea but we're talking about a company with a business model that isn't "freelancing". I'm assuming a few hundred thousand dollars isn't the upper bound like it would be for a freelancer.
TL;DR: Some guy on Twitter says "VCs will fund any company with a Series A if they are making $2,750 a day". The author disagrees and says that there are 3 things that are important: market, growth rate and margin.
Corrections:
1. "Some guy" = Jason Calacanis.
2. "on Twitter" = http://blog.launch.co/blog/there-is-no-series-a-crunch.html
1. "Some guy" = Jason Calacanis.
2. "on Twitter" = http://blog.launch.co/blog/there-is-no-series-a-crunch.html
In my view, for Round A you need revenue and the following three:
100M$+ market volume
Margins
Distribution strategy
Suggested Title: Revenue alone won't get you VC
Title is misleading. @Smalter's suggestion is far more accurate.
If the question is purely, "What is a ballpark MRR for a Series A SaaS company?", this is a helpful thread: http://www.quora.com/Software-as-a-Service-SaaS/What-are-ave...