Jacob Mullins, partner at Shasta Ventures, recently published a relatively overlooked piece on LinkedIn, detailing how hot and demanding the VC funding market in San Francisco – one of the top venture spots in the world – really is. While these numbers may seem astronomical from a local perspective they do give a good impression what currently is possible in the fast moving tech scene.
Some key take – aways:
Make Product Market Fit your mantra
What is the best way of demonstrating Product Market Fit? Revenue! The current bar for raising Series A is a minimum of $1M in ARR
Every Silicon Valley investor is obsessed with T2D3 – a growth path assuming tripling revenues in first 2 years and doubling them for the next consecutive 3 years, resulting in revenues increasing nearly 100x in that time period
What is a compelling, growing market? A $10b size going to $100b in the next five years
Put your team slide very early on in the deck – like Slide 1 or 2
Definitely visit Jacobs article to get a full picture of what the funding game looks like in strong, up-cycle environments like the our current one.