Real transcript from a founder call yesterday (edited for clarity)..

Founder: What metrics do I need to get to a Series A? I hear a lot of different things.

Me: It honestly really depends. I wish I could tell you an exact number..

Founder: What do you mean? It used to be $1M, isn't it now $2M.

Me: You'd think that.. But, it also depends what sector you are in, what your growth rates are, ACV, quality of revenue, storytelling ability. And frankly, all of those go to the sink when sometimes the round gets extremely hot.

Founder: Share more?

Me: I just heard of a round getting done at >$200M post for <$200k in ARR. Yes, by a high quality investor. And, I was talking to a founder who's doing $3M in ARR but can't even pull a round together.

Founder: So, what should I do?

Me: First, I won't compare your round to others, it's just not worth it. You don't know what side of the bed a VC woke up on to give someone that money. Second, I'd figure out what does additional capital get you today. Venture capital is meant to be an accelerant, raising should not be the default path. Third, in the long term, building a great product and gaining distribution faster than anyone is the only alpha. Everything else is just noise. Plenty of famous examples of companies that took a while to "win" even though the competition was far better funded.

Founder: Hmph

Me: I'm sorry it's not the clear answer you want, but that's what I think.