
Revenue Doesn’t Matter - bretthardin
https://medium.com/i-m-h-o/29e052eb4b4f
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smalter
The less sensational title: Revenue alone doesn't matter, you have to consider
it in context.

If the question is purely, "What is a ballpark MRR for a Series A SaaS
company?", this is a helpful thread: [http://www.quora.com/Software-as-a-
Service-SaaS/What-are-ave...](http://www.quora.com/Software-as-a-Service-
SaaS/What-are-average-revenues-MRR-or-ARR-for-SaaS-companies-at-the-time-of-
the-Series-A)

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mikegioia
Wow, the top post in that quora topic says $2M in ARR for an unproven team
before they get any VC money. That seems kinda high to me. I feel like the
team's proven themselves after a couple hundred grand of annual revenue.

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abolibibelot
"A couple hundred grand" is what a freelancer who charges well makes in a
year.

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mikegioia
Yea but we're talking about a company with a business model that isn't
"freelancing". I'm assuming a few hundred thousand dollars isn't the upper
bound like it would be for a freelancer.

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casca
TL;DR: Some guy on Twitter says "VCs will fund any company with a Series A if
they are making $2,750 a day". The author disagrees and says that there are 3
things that are important: market, growth rate and margin.

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kkowalczyk
Corrections:

1\. "Some guy" = Jason Calacanis.

2\. "on Twitter" = <http://blog.launch.co/blog/there-is-no-series-a-
crunch.html>

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yurylifshits
In my view, for Round A you need revenue and the following three:

    
    
        100M$+ market volume
        Margins
        Distribution strategy
    

Distribution strategy is better property to focus on than growth rate. All
these week-over-week or month-over-month numbers can be gamed. And keep in
mind "Crossing the Chasm" challenge. Your growth rate among early adopters has
nothing to do with your ability to win the mainstream market.

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jspaur
Suggested Title: Revenue alone won't get you VC

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JacksonGariety
Title is misleading. @Smalter's suggestion is far more accurate.

