RAISING YOUR NEXT ROUND IS HARDER THAN YOUR LAST ONE. HERE'S WHY

Summary from the TLDR Founders newsletter

This post lays out the arithmetic behind why a company that raised a seed easily gets Series A nos without changing anything about itself. An accelerator writing checks at $330K to $2.5M post-money only needs a $33M to $250M exit to work. Your seed at $5-10M post requires belief in a $500M to $1B outcome, and a Series A investor underwrites a path to roughly $100M a year, which is why $1M ARR is not enough. Dilution eats 50%+ by exit. Three escape valves get named, including customer-funded growth and capital that does not need 100x.