SaaS metrics for Series A readiness and momentum

Pietro Bezza
2 min readFeb 9, 2022
Yes, I am doing the T-shirts and the mugs

What has changed for seed-stage startups who are planning to raise Series A? It is normal that in a new climate of uncertainty with SaaS valuations on a rollercoaster (SaaS is back folks), founders at the seed stage question how early-stage investors will react to what is happening in the public market and at late stages. I have been chatting about this topic with the founders/CEOs of the SaaS companies at seed stage that I work with. They are in a strong position: not sitting on high valuations and with relatively solid runways (18 months+). The debate encompassed runway and burn, valuations and proof points. Eventually, it boiled down to WHEN is the right timing to fundraise Series A.

My immediate answer was: KEEP CALM and PMF.

The extended summary of our conversations 👇👇👇

  • Public and late-stage markets are on a rollercoaster and the perception of infinite growth have changed. The effects for it will likely trickle down to the early stage.
  • The bar is likely going to rise, the pace is likely going to slow down.
  • When it comes to fundraising Series A, we need readiness plus momentum
  • Readiness=PMF. Key SaaS milestones and metrics. ARR level, but more importantly, ARR quality. Rule of thumb: >$750k ARR, 10+ sweet spot customer logos, 3+ flagship happy customers, strong customer love. GTM: repeatability of the growth engine, funnel velocity, conversion to paying rate, valuable uses cases, expansion motion. Of course: no or low churn.
  • Momentum = Growth. Let’s not confuse market momentum with company momentum. Company momentum= growth rate. Key indicators: MRR monthly growth. Rule of thumb: 15%+ MoM. Pipelines growth, signs-up growth, product engagement metrics growth (e.g. MAU, volume of product units, of APIs calls, etc). Market momentum: yesterday was negative, today is better, tomorrow. The point here, do not time the market.
  • Sometimes readiness is enough. But this is only true for high conviction, thesis-led VCs.
  • Let’s allocate capital and focus on the activities with the highest ROI: exceptional hires, product excellence, customer value, category narrative.
  • Play your own game. Good things will come. It will take us to be ready, to generate growth momentum and to fundraise successfully.



Pietro Bezza

Believe in the power of software products to improve people’s lives on a massive scale. Co-founder and Managing Partner at Connect: (