A Founder's Guide to a Successful Series A in 2024

Raising a Series A round in 2024 requires a fundamentally different approach than in previous years. The market has matured, investors have become more selective, and the bar for demonstrating product-market fit has risen significantly. Here's what founders need to know to successfully navigate this landscape.

The New Series A Landscape

Gone are the days when a compelling pitch deck and strong team could secure Series A funding. Today's investors want to see clear evidence of traction, sustainable unit economics, and a path to profitability. The median Series A round size has increased to $15-20 million, but so have the expectations for revenue and growth metrics.

Companies raising Series A in 2024 typically have $1-3 million in annual recurring revenue (ARR) and are growing at 10-20% month-over-month. These aren't just nice-to-have metrics—they're table stakes for serious consideration.

Essential Metrics to Track

Revenue metrics are obviously crucial, but investors are looking for a comprehensive picture of your business health. Key metrics include: Monthly Recurring Revenue (MRR) and its growth rate, Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV), with a healthy LTV:CAC ratio of at least 3:1, Net Revenue Retention (NRR) above 100%, and Gross margins above 70% for software companies.

Beyond the numbers, investors want to understand your market opportunity, competitive positioning, and go-to-market strategy. Be prepared to articulate not just what you've achieved, but how you plan to scale.

Building Your Narrative

A successful Series A pitch tells a compelling story about market opportunity, product differentiation, and execution capability. Your narrative should clearly articulate the problem you're solving, why now is the right time to solve it, and why your team is uniquely positioned to succeed.

Don't just present data—explain what it means and why it matters. Investors see hundreds of pitch decks; the ones that stand out are those that tell a coherent, compelling story backed by strong evidence.

Due Diligence Preparation

Modern due diligence is more thorough than ever. Investors will scrutinize your financials, talk to customers, and evaluate your technology stack. Preparation is key: organize your financial records, prepare customer references, document your technology architecture, and ensure your legal structure is clean.

Consider conducting a mock due diligence process with advisors or friendly investors. This can help identify potential issues before they become problems in a real fundraising process.

Choosing the Right Investors

Not all money is created equal. Look for investors who bring more than just capital—industry expertise, network connections, and operational support can be just as valuable as funding. Research potential investors thoroughly: understand their portfolio, investment thesis, and track record with companies like yours.

At 19clicks, we focus on being true partners to our portfolio companies. We bring operational expertise, industry connections, and hands-on support to help companies scale efficiently. This partnership approach is becoming increasingly important as the market becomes more competitive.

Timing and Process

Start your fundraising process 6-9 months before you need the money. This gives you time to build relationships with investors, refine your pitch, and navigate the due diligence process without pressure. A rushed fundraising process rarely ends well.

Plan for a 3-6 month fundraising timeline, and don't let the process distract from running your business. The best fundraising outcomes come from companies that continue to execute and hit milestones throughout the process.

Final Thoughts

Raising a Series A in 2024 is challenging, but it's absolutely achievable for companies with strong fundamentals and clear growth trajectories. Focus on building a sustainable business first, and the funding will follow. Remember, the goal isn't just to raise money—it's to find the right partners who can help you build a lasting, successful company.