Series A Funding Guide — How to Prepare and Close Successfully
- Awake Partners
- Aug 19
- 4 min read
TL;DR — Series A Funding Guide (2025):
Raise Series A when you achieve product-market fit and need capital to scale.
Round sizes: typically €2M–€10M in Europe, depending on traction and sector.
Key requirements: retention metrics, repeatable sales processes, strong go-to-market.
Preparation: investor-ready Data Room, refined financial model, and a compelling growth story.
This 2025 Series A guide helps scaling startups prepare for their next big fundraising step.
From refining your KPIs to managing due diligence and negotiating terms, discover proven strategies to secure growth capital and attract the right investors for your expansion.
As Sequoia Capital explains, Series A is when founders move from validation to scaling.
If you’re earlier in your journey, our Seed Funding Guide will help you prepare for your first institutional round.
What Is a Series A Round?
A Series A round is the first significant institutional investment after your Seed stage. The goal is to scale a validated business model, expand market share, and accelerate revenue growth.
Series A funding typically ranges from $5M to $20M, depending on industry and geography.
Investors at this stage — usually venture capital firms — expect clear evidence of traction, strong unit economics, and a plan for rapid scaling.
Unlike Seed rounds, which focus on proving the concept, Series A is about proving the business can scale efficiently and profitably.
Signs You’re Ready for Series A
You might be ready if:
You’ve achieved consistent month-over-month growth in revenue or users.
Your product has a strong market fit with low churn.
Key operational processes are in place to support scaling.
You can present a clear path to significant market capture.
If you’re still refining your product-market fit or struggling with retention, it may be worth delaying. Series A investors expect reduced risk and clear upside.
Key Metrics and KPIs Investors Expect
Investors look for metrics that validate scalability:
Annual Recurring Revenue (ARR) or Monthly Recurring Revenue (MRR) growth.
Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV) ratio.
Gross Margin stability or improvement.
Retention rates and low churn.
Sales efficiency (e.g., CAC payback period).
These metrics prove you can scale without burning excessive capital and that your growth model is repeatable.
According to Bessemer’s scaling metrics, investors prioritize retention and efficiency at Series A.
Building Your Series A Pitch and Data Room
Your Series A pitch must focus on scalability, market opportunity, and operational readiness.
Include:
Updated pitch deck highlighting traction, KPIs, and team readiness.
Detailed financial model for the next 24–36 months.
Data Room with contracts, customer metrics, legal documents, and product roadmaps.
Consistency across these materials is critical — discrepancies can erode investor confidence during due diligence.
Approaching the Right Investors
Target investors whose portfolio aligns with your stage, sector, and geography.
Research through Crunchbase, PitchBook, or VC websites.
Use warm introductions via advisors, existing investors, or industry contacts.
Assess strategic fit — expertise, network, and follow-on funding capacity.
Generic cold outreach rarely works; tailor each pitch to the investor’s thesis and portfolio.
Navigating Due Diligence and Negotiations
Due diligence for a Series A round is far more exhaustive than what most founders experience at Seed stage. At this point, investors are committing larger amounts of capital and will want to minimize risk through a deep review of your company’s financial, legal, and operational health.
You can expect detailed analysis of:
Financial statements and forecasts — accuracy, assumptions, and revenue recognition practices.
Customer contracts and retention data — churn, upsell potential, and concentration risk.
Intellectual property — patents, trademarks, ownership rights, and potential disputes.
Regulatory compliance — particularly if you operate in fintech, healthtech, or deeptech sectors with strict oversight.
Team structure — leadership depth, key hires, and retention plans.
On the negotiations side, discussions will typically focus on:
Valuation and the equity percentage to be offered.
Liquidation preferences and distribution order in case of an exit.
Board composition and voting rights.
Protective provisions such as veto rights or anti-dilution clauses.
Pro tip: Negotiations are not just about the highest valuation — sometimes a slightly lower valuation with founder-friendly terms can be far better for your long-term fundraising strategy.
Overly aggressive terms may create friction in Series B and beyond.
Our Seed Funding Guide covers early-stage due diligence and investor negotiations in detail.
Key Takeaways
• Series A is about scaling, not proving — show retention and repeatable growth.
• Round sizes vary, but investors expect strong fundamentals and a vision for expansion.
• Preparation is critical: organize your Data Room early and refine your pitch narrative.
Crunchbase data shows that Series A round sizes in Europe have steadily increased, reflecting greater capital intensity in tech.
How Awake Partners Supports Your Series A Journey
Awake Partners has guided founders through Series A rounds across Europe, APAC, and the US.
We help you:
Strengthen your pitch and financial story.
Connect with strategically aligned investors.
Manage due diligence and negotiations efficiently.
Our expertise ensures you approach Series A with confidence and close on optimal terms.
Explore more fundraising insights in our Resources hub and get expert support for your next funding milestone.
Q&A — Quick Answers for Founders
Q: When is the right time to raise Series A?
A: Once you’ve proven product-market fit, achieved consistent retention, and can show repeatable growth metrics.
Q: How big is a typical Series A round?
A: In Europe, Series A rounds usually range from €2M to €10M depending on sector and traction.
Q: What do investors expect at Series A?
A: A clear go-to-market strategy, strong revenue growth, retention data, and investor-ready documents (deck, model, Data Room).
