The Founder’s Guide to Raising a Series A Venture Financing
IMHO, the key remark is:<p>&quot;When are you ready to raise
a Series A?&quot;<p>&quot;The snide answer is that
you are ready to raise an A
when you can convince a VC
to give you a term sheet.
The more nuanced answer is
when you have achieved
compelling enough
intermediate milestones
that convince VCs that cash
is your constraint to
scaling your business.  In
other words, you have
something that works, and
all it takes is pouring
money on it to grow it
much, much bigger.&quot;<p>The rest is assuming that
VCs don&#x27;t know how to read
or think and need some
exciting <i>experience</i> as in
some movie.<p>A big problem for the VCs is that
for a lot of the good information technology startups, by the time the startups have the revenue the VCs want, the startups will also have plenty of cash to grow.  Why?  Because the associated computing is now so cheap and, for a Web site with a lot of traffic, revenue from ad networks is so easy to get.