Usually, a teacher who grades students on a curve is boosting the efforts of those who didn’t perform well on the test. In the case of cloud companies, however, it’s the other way around. As of Q1 2021, startups in this sector have median Series A rounds around $8 million, reports PitchBook. With $100+ million Series D rounds becoming more common, company valuations are regularly boosted into the billions. Andy Stinnes, a general partner at Cloud Apps Capital Partners, says founders who are between angel and Series A should seek out investors who are satisfied with $200,000 to $500,000 in ARR. Usually a specialist firm, these VCs are open to betting on startups that haven’t yet found product-market fit. “At this phase of development, you need a committed partner who has both the time and the experience to guide you,” says Stinnes. These observations aren’t just for active investors: This post is also a framework for new and seasoned founders who are getting ready to knock on doors and ask strangers for money. Thanks very much for reading Extra Crunch this week! Walter Thompson Senior Editor, TechCrunch @yourprotagonist Read More |
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