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So you can happily get to ramen profitable as a founding team, but when you raise your first round you are expected to grow the team size quite a bit, and the c
by patio11 12y ago
So you can happily get to ramen profitable as a founding team, but when you raise your first round you are expected to grow the team size quite a bit, and the capable professionals you are hiring will not work for ramen (and should not be expected to).
Ask somebody in the Valley who sees more of them, but N months after a Series A, I'd expect to see at least 8 people on the team and probably closer to 20. That implies a salary bill in the, hmm, $100k to $200k range. Every two weeks, due like clockwork. Obviously, if you've already hit ~$500k a month in revenue, you're golden (as long as you freeze hiring), but most similarly situated companies haven't hit that yet.
- applecore 12y agoThe benchmark for a company raising its Series A is now $50k MRR. (This used to be closer to $100k.) You'd expect to be at $100–150k MRR six months after the Series A, assuming a 15–20% monthly growth rate. If you're already at $500k MRR, you're in Series B territory.
- patio11 12y agoEgads.
- kenrikm 12y agodadgum.. 500k MRR seems low for a Series B.
- applecore 12y agoWhile the bar for absolute revenue may be lower, the growth rates of the best SaaS companies are astonishingly higher. The markets are bigger now, so your growth from $1–2m ARR to $10m ARR and beyond has to be much faster these days.