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Dear SaaStr: What Are The Rough Benchmarks for Raising a Series A?

  • When raising a Series A, SaaS companies typically have $1M-$2.5M in ARR, showing product-market fit and traction.
  • Investors look for 7%-15% month-over-month growth and a path to tripling ARR in the next 12 months.
  • Ideal CAC payback period is under 12 months, showcasing a scalable sales model.
  • Critical factors include low or negative churn, a strong founding team, tackling a large market, and Series A round sizes of $5M-$15M.
  • The eligibility of this article for a web story is false.

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