Getting to Series A means you’ve attained certain financial metrics and customer relationships. It’s essential to have strong partners who will be reference accounts and customers who are using and paying for your product in the real world. For enterprise startups, it’s key to have to $1-2m in ARR run rate.
Finding ways to increase revenue
There are opportunities to increase revenue to achieve the Series A dream more quickly. One way to close deals faster is by using a process called revenue velocity. In a nutshell, it means simplifying and shortening contracts to make them quickly consumable by customers. Miriam designed the concept when she was the second attorney at Google. This simple innovation was one of the key reasons the company was able to grow from $85m in revenue to $10b so quickly.
Shortening the contract can also make a huge difference in terms of staff time, energy and money. It often means customers will sign the contract “as is”. Revenue in the door more quickly helps founders close Series A earlier.
Ulu can help guide entrepreneurs
Ulu can help founders think about how to move customer relationships forward and to consider which investors would best suit their business. Founders should think of fundraising as more than a sales process. While identifying customers using LinkedIn and one’s social networks is important, it’s critical to “qualify” partners by ensuring they understand the market and patterns of success for that startup. We guide entrepreneurs through the process and help with introductions targeting appropriate investors. Sometimes we’re able to back channel with investors, obtaining useful feedback an entrepreneur might miss.