Revenue Doesn’t Matter

The less sensational title: Revenue alone doesn't matter, you have to consider it in context.<p>If the question is purely, "What is a ballpark MRR for a Series A SaaS company?", this is a helpful thread: <a href="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" rel="nofollow">http://www.quora.com/Software-as-a-Service-SaaS/What-are-ave...</a>

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.

In my view, for Round A you need revenue and the following three:<p><pre><code> 100M$+ market volume Margins Distribution strategy </code></pre> 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.

Suggested Title: Revenue alone won't get you VC

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