Investors break down how founders can raise a Series A today
Raising a Series A these days isn't so simple — top investors break down what founders need to know now.
Three investors recently discussed the challenges of raising a Series A in today's market, where no single metric universally defines a Series A or the process of raising one. Peak XV's Shailendra Singh warned that the current market is one of the toughest he has seen, with high expectations to convince top firms and a wide range of terms, capital, and valuations.
Jahanvi Sardana of Index Ventures and Jenelle Teng Wade of Bessemer added that the market is currently dysfunctional, with firms splitting deals into multiple tranches or chunks. They emphasized the importance of a founder's ability to attract top talent, the products or services being built, and the metrics being used to evaluate companies.
However, they noted that metrics are less clear-cut in the AI industry, where costs are high and valuations inflated. Singing cautioned against inflated ARR numbers and urged founders to be intellectually honest. The panelists also advised founders to be audacious in their requests and focus on solving a significant problem, rather than catering to funding trends.
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