At NextView Ventures, we examined our seed-stage startup portfolio of 40+ web and mobile companies and produced this data around which strategies help startups raise Series A. The SlideShare contains data on four key strategies, as well as their success rates in both time to Series A and total dollars.

1. New STARTUP Data:
Winning Strategies
for Raising Your
Series A
A Look Inside the
Portfolio of Seed VC

2. “Data,” eh?
I’m skeptical. Who
are you, and how
did you get all that?

3. We’re NextView Ventures.

4. We’re NextView Ventures.
A seed-stage VC firm with a single mission:

5. We’re NextView Ventures.
A seed-stage VC firm with a single mission:
Help founders give their web & mobile companies the
B e s t p o s s i b l e s t a r t

6. We’re NextView Ventures.
A seed-stage VC firm with a single mission:
Help founders give their web & mobile companies the
B e s t p o s s i b l e s t a r t
(We think about those three words a lot, so we thought
we’d be transparent about what works for our portfolio.)

7. We’re NextView Ventures.
A seed-stage VC firm with a single mission:
Help founders give their web & mobile companies the
B e s t p o s s i b l e s t a r t
(We think about those three words a lot, so we thought
we’d be transparent about what works for our portfolio.)
40+ web & Mobile Startups
(All U.S.-Based)

8. For context:
70+% of our portfolio startups
that attempted to raise Series A successfully
did so. (The industry average is ~27%.)
Industry data via tomtunguz.com

9. So we wondered…
WHY?

10. So we wondered…
WHY?
Why do they succeed?
What were their narratives?
What altered their timelines to raise?
What affected their total dollars raised?

11. Here’s what we found…

12. 4
There were distinct
approaches used to
successfully raise Series A.
(We’ll call these the
“winning” strategies.)

13. The 4 Winning Strategies for
Raising Series A

14. The 4 Winning Strategies for
Raising Series A
BUILD AUDIENCE MOMENTUM
• Organic user growth translates to big topline figures.
• Attractive graphs, while vanity metrics, contribute to the story.

15. The 4 Winning Strategies for
Raising Series A
BUILD AUDIENCE MOMENTUM
• Organic user growth translates to big topline figures.
• Attractive graphs, while vanity metrics, contribute to the story.
Generate real revenue
• Strong sign the company is investable.
• Especially in B2B, indicates product-market fit.

16. The 4 Winning Strategies for
Raising Series A
BUILD AUDIENCE MOMENTUM
• Organic user growth translates to big topline figures.
• Attractive graphs, while vanity metrics, contribute to the story.
Generate real revenue
• Strong sign the company is investable.
• Especially in B2B, indicates product-market fit.
Craft a Small Scale machine
• Shows deep (if narrow) engagement or market penetration.
• Attractive small-scale economics, including LTV/CAC ratio.*
*Lifetime Value to Customer Acquisition Costs

17. The 4 Winning Strategies for
Raising Series A
BUILD AUDIENCE MOMENTUM
• Organic user growth translates to big topline figures.
• Attractive graphs, while vanity metrics, contribute to the story.
Generate real revenue
• Strong sign the company is investable.
• Especially in B2B, indicates product-market fit.
Craft a Small Scale machine
• Shows deep (if narrow) engagement or market penetration.
• Attractive small-scale economics, including LTV/CAC ratio.*
SELL HUGE VISION & UNSTOPPABLE PROMISE
• Convey and generate excitement via qualitative means.
• Sensational press/advisors/pilot customers all contribute.
*Lifetime Value to Customer Acquisition Costs

18. First, a look at how quickly
each group raised their
Series A rounds.

19. Across all four winning
strategies, the average time
between raising seed capital
and raising Series A was…

20. Across all four winning
strategies, the average time
between raising seed capital
and raising Series A was…
303 days
(or roughly 10 months)

21. The exact timelines varied slightly across each
strategy. (We’ll interpret this data in a few slides.)
309 days
323 days
320 days
261 days
Days
BETWEEN
Seed &
SERIES A
Audience
Revenue
Small Scale
Promise
Startup Operating Strategy

22. Next, a look at
Series A size.

23. The average amount
raised across all four
winning strategies was…

24. The average amount
raised across all four
winning strategies was…
SI 5.2M

25. Series A dollar amounts varied a bit more than the
timelines when you examine each strategy:
$4.5M
$5.9M
$4.8M
$5.6M
SERIES A
DOLLARS
RAISED
Audience
Revenue
Small Scale
Promise
Startup Operating Strategy

26. So what can we
learn here?

27. Thing We Learned #1
309 days
323 days
320 days
261 days
Companies operating with a
focus on revenue growth
took the longest to raise
their Series A. However…
Audience
Revenue
Small Scale
Promise
Startup Operating Strategy
Days
BETWEEN
Seed &
SERIES A

28. Thing We Learned #1
$4.5M
$5.9M
$4.8M
$5.6M
SERIES A
DOLLARS
RAISED
…they raised the largest
dollar amounts.
Audience
Revenue
Small Scale
Promise
Startup Operating Strategy

30. A comforting
finding, really

31. Thing We Learned #2

32. Thing We Learned #2
309 days
323 days
320 days
261 days
Startups pitching the more
qualitative, future-looking
“promise” strategy raised
quickest, perhaps needing
to strike while their story
still had momentum.
Audience
Revenue
Small Scale
Promise
Startup Operating Strategy
Days
BETWEEN
Seed &
SERIES A

33. Thing We Learned #2
$4.5M
$5.9M
$4.8M
$5.6M
SERIES A
DOLLARS
RAISED
And, somewhat
surprisingly, they raised
the second-highest Series A
rounds on the backs of
these stories.
Audience
Revenue
Small Scale
Promise
Startup Operating Strategy

35. MOON
OR
BUST!

36. Thing We Learned #3

37. Thing We Learned #3
Having larger, lifecycle VCs (i.e.
firms known for investing in later
rounds) invest in a startup’s seed
round had no meaningful impact on
how quickly they raised Series A.

38. Thing We Learned #3
Having larger, lifecycle VCs (i.e.
firms known for investing in later
rounds) invest in a startup’s seed
round had no meaningful impact on
how quickly they raised Series A.
However, these VCs did appear to
help startups raise larger
dollar amounts.

39. Thing We Learned #3
Having larger, lifecycle VCs (i.e.
firms known for investing in later
rounds) invest in a startup’s seed
round had no meaningful impact on
how quickly they raised Series A.
However, these VCs did appear to
help startups raise larger
dollar amounts.
With large VCs involved in seed:
$5.9M Series A average
Without large VCs involved in seed:
$4.9M Series A average

40. Thing We Learned #4

41. Thing We Learned #4
Higher founder salaries did not appear to have any
meaningful impact on Series A timelines or dollars.

42. Thing We Learned #4
Higher founder salaries did not appear to have any
meaningful impact on Series A timelines or dollars.
(There’s a popular opinion that founders who take
higher salaries are less hungry or driven, which could
affect their success in both operating and fundraising.)

43. Thing We Learned #4
Higher founder salaries did not appear to have any
meaningful impact on Series A timelines or dollars.
(There’s a popular opinion that founders who take
higher salaries are less hungry or driven, which could
affect their success in both operating and fundraising.)
(This is not an opinion shared by NextView.)

44. So what should
entrepreneurs do
differently?

45. So what should
entrepreneurs do
differently?
First, accept that
there isn’t one “right”
or “best” way to raise
Series A. In reality,
there are many ways.

46. So what should
entrepreneurs do
differently?
First, accept that
there isn’t one “right”
or “best” way to raise
Series A. In reality,
there are many ways.

47. So what should
entrepreneurs do
differently?
So rather than seek
THE way, you should
instead be explicit about
WHICH way you plan to
operate.

48. So what should
entrepreneurs do
differently?
So rather than seek
THE way, you should
instead be explicit about
WHICH way you plan to
operate.

49. So what should
entrepreneurs do
differently?
So rather than seek
THE way, you should
instead be explicit about
WHICH way you plan to
operate. Focus on it, set
goals through it, tell
your story around it,
and pitch with it.

50. Once you pick that strategy and begin to focus on it,
you’ll have a better idea of how to orient your company
towards a successful Series A.

51. Once you pick that strategy and begin to focus on it,
you’ll have a better idea of how to orient your company
towards a successful Series A.
Selling hype and promise?
Go for Series A sooner

52. Once you pick that strategy and begin to focus on it,
you’ll have a better idea of how to orient your company
towards a successful Series A.
Selling hype and promise?
Go for Series A sooner
Generating real revenue?
ANTICIPATE A LONGER TIMeLINE to raise
(but ask for more dollars)
Etc.

53. Once you pick that strategy and begin to focus on it,
you’ll have a better idea of how to orient your company
towards a successful Series A.
Selling hype and promise?
Go for Series A sooner
Generating real revenue?
ANTICIPATE A LONGER TIMeLINE to raise
(but ask for more dollars)
Etc.
(So says the data)

54. In the end,
the seed stage is all about traction,
which ultimately informs the story
you use to raise Series A.

55. In the end,
the seed stage is all about traction,
which ultimately informs the story
you use to raise Series A.
To find success, identify
your strategy early
and optimize
Everything
around it.

56. BEST OF LUCK!
The NextView Ventures Team

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