Bridging to Series A

Your seed bought 18 months. The Series A market expects to see specific evidence by month 12. Plan backward from the metrics — not from your runway.

The 8 metrics that get A-rounds done

1. ARR ≥ $1M — the floor. Some specialists go lower (deep-tech, healthcare); SaaS expects $1.5M+.
2. Net dollar retention ≥ 110% — for SaaS / B2B. For consumer: 6-month retention curves with stable shape.
3. Gross margin ≥ 70% — for SaaS. Marketplaces ≥ 25%. Hardware ≥ 30%. Investors are picky here in 2026.
4. 3× ARR-growth multiple — last 12 months, sustainably (not from one big customer).
5. CAC payback ≤ 18 months — and ideally trending down.
6. 10+ paying logos — diversity matters more than concentration. No customer over 25% of revenue.
7. Repeatable GTM motion — at least one channel where you can predict CAC ± 20% over the next quarter.
8. Founding team of 2+, executive team of 4+ — most A-rounds want at least one VP-level hire (Sales or Engineering).

When to start the conversation

Three months before you want a term sheet. Build a relationship, not a pitch. A-stage VCs want to see your trajectory, not just your snapshot. Founders who reach out cold for a Series A typically get 30% lower valuations than founders who built six months of relationship.

The 6-month pre-A relationship arc

• Month -6: Identify 12 target firms. Pick 4 partners per firm. Initial intro meeting — "we're 12 months out, would love to share quarterly updates."
• Month -5: First quarterly update. Share metrics. Ask for product feedback, not for a cheque.
• Month -3: Second update. Now flag: "we'll start formal Series A conversations in 90 days."
• Month -1: Final pre-pitch update. Include "we plan to close in Q[X]" — gives investors enough lead time to prepare.
• Month 0: Formal process starts. Term sheet target: 14 days.

Bridge round — yes or no?

If you'll hit Series A metrics within 6 months but only have 4 months of cash, a bridge makes sense. Rule of thumb: bridge rounds happen at flat valuation or with a discount to the next round (typically 20–30% off the priced-A). Done at seed, they're SAFEs or convertibles.

Red flags that suggest you're not ready for a bridge:

• Your metrics aren't on track AND you can't articulate the unblocker.
• Existing investors won't participate in the bridge.
• You've already done one bridge.

What's different about an A vs. a seed

• Diligence is real. Customer reference calls (8–10), management presentations, technical deep dives, market sizing audits. Plan 6 weeks of process.
• Term sheet is harder to negotiate. Standard A clauses are now better-defined; you have less room to push back. Pick your 2–3 fights carefully.
• Board changes. Lead investor takes a board seat. You may need to add an independent director.
• Reporting expectations. Monthly updates become quarterly board packs (10–15 pages, formal).

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