What metrics must a SaaS startup demonstrate today to raise a successful Series A round?

Jason Lemkin
Replied byJason Lemkin

Founder & CEO at SaaStr

Niche: SaaS
Revenue: Approx. USD 2.5 Million/month
Location: Palo Alto, California, United States
Started: 2012

Founders must demonstrate at least one to two million in annual recurring revenue growing at over one hundred percent year-over-year, alongside gross margins exceeding seventy-five percent and net revenue retention above one hundred and ten percent. The bar for product-market fit has risen dramatically; investors demand proof of customer love rather than promises of addressable market size.

0
From the Full Interview

This answer is part of a full interview with Jason Lemkin, Founder & CEO at SaaStr.

Share this Answer

Found this insight valuable? Share it with your network to help others learn from Jason Lemkin's experience.

Cite This Answer

Use this answer in your research, article, or academic work