Equity Peering into the 'Series A chasm' with Everywhere Ventures' Jenny Fielding
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May 29, 2024 Jenny Fielding, Co-founder and Managing Partner at Everywhere Ventures, dives into the challenges startups face in securing Series A funding. She highlights the rising expectations for revenue and growth, labeling the situation as the 'Series A Chasm.' With a notable decline in seed-stage investments, Fielding discusses a shift towards larger seed rounds and the economic hesitance of institutional investors. She emphasizes the need for founders to focus on operational efficiency and nurture their relationships with investors during these uncertain times.
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Series A Chasm
- The Series A bar has risen significantly, making it harder for startups to secure funding.
- Founders need higher revenue and faster growth than in previous years.
Aggressive Growth Expectations
- Achieving 30% month-over-month growth is a very aggressive target for startups seeking Series A funding.
- This level of growth, if sustained, can lead to exponential revenue increases within a few years.
Five Years to Series A
- Jenny Fielding describes a common scenario where startups take over five years to reach Series A.
- Even with $2-3 million ARR, VCs might consider the growth too slow.