Series A

The first major institutional venture capital round, typically $5M-$20M, funding the transition from product-market fit to scalable growth.

Definition

Series A is the first priced round led by institutional venture capital firms. It typically raises $5M-$20M at valuations of $15M-$100M. Investors expect evidence of product-market fit: meaningful revenue ($500K-$2M+ ARR), strong retention, and a repeatable customer acquisition process. Series A funds the build-out of the go-to-market engine, key hires, and infrastructure for scaling.

Series A is often called the "hardest round to raise" because the bar jumps significantly from seed. Many startups with traction fail to raise Series A because they can't demonstrate a clear path to scalable growth.

Why it matters for founders

Series A marks the transition from experimentation to execution. It's where your startup proves it can scale what works. The metrics required for Series A (ARR, retention, growth rate) should shape your seed-stage strategy.

Example

Figma raised a $14M Series A in 2015 led by Greylock Partners. They had a working product, early designer adoption, and a clear vision for collaborative design. The funding went toward building the multiplayer editing engine and growing the user base that eventually led to Adobe's $20B acquisition offer.