

The SaaS Fundraising Death Zone (what I wish I knew two years ago) - geoffmcqueen
http://geoffmcqueen.com/2015/07/22/saas-fundraising-death-zone/

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toast76
It also has a lot to do with the rate at which you took to get to that "death
zone". If it takes three years to get to $50k/mth, there will be big question
marks around your ability to scale beyond that.

It's not a coincidence that this zone maps up with the "chasm" between niche
and mass-market appeal. If a company has been unable to already demonstrate
that they can scale the product effectively, they're asking a VC to take a
punt on whether they can or can't...and if it's taken 3 years, then evidence
already suggests that perhaps they can't.

The other problem, is that after 3 years whilst it still may not be clear what
you're company could be, it's already known what you're _not_. The possible
outcomes have been narrowed. It's known you're not going to be a complete
failure, but it's also known that you're not a "Unicorn".

