What kind of traction should I have to raise a series B funding?

Rob Coneybeer / November, 2017

Description

Rob Coneybeer, Managing Director at Shasta Ventures explains what kind of traction you should have when raising a series B funding.

Video Transcript

What kind of traction should I have to raise a series B funding?

One of the things that a lot of people ask about is: what kind of traction should I expect with my company when I’m raising series A investment or a series B investment. The answer that I give to people is one that is often unsatisfying, which is, it depends. It depends on a lot of things, but fundamentally at the series A stage, the key milestones are: is there a team in place, is there a clear definition of the product, service, market and who the competition is.

Often it will be pre-product-market fit will be very close to when the product goes to market. At the series B stage, we expect the product to be at market, a clear set of customers that are using the product and then customers that are referenceable, that are excited about the product that we can talk to, and we can get a real sense for when we put money into the company, what will it be used on how effective will it be.

What that would mean is series B money might be used to build your salesforce out, it might be used to expand your sales and marketing operations and how much you spend on customer acquisition. It also at the same time might be used for the next phase of product improvements so those are the things we expect to see in place at the series B stage versus the series A stage.

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