I advise founders to keep pitching until they get a yes – the first yes is the hardest, after which FOMO drives the round to closure.
You get much better offers when multiple investors want 'IN' at the same time.
I therefore advise founders to start fundraising at least six months before capital is needed, build real relationships, understand each fund’s decision cycle, run multiple conversations in parallel, and sync timelines so interest peaks together.
I observed that the median ARR for Series A SaaS startups has jumped to roughly $2.8 M (≈ ₹25 cr), a steep rise from the old $1 M rule‑of‑thumb, and this shift is reshaping how founders compete and generate momentum.
- Median ARR for Series A candidates: ~$2.8 M (₹25 cr) ≈ 2026‑01‑05.
I therefore advise founders to reset their fundraising targets and aim for rapid ARR scaling (0–$3/4M) rather than relying solely on product quality or customer love, because investors now view fast ARR growth as the primary signal of defensibility.
- Open questions: how long the AI‑driven ARR ceiling will hold; which AI features correlate with fast growth; sector‑specific ARR variations.
- Historical median ARR benchmark: ~$1 M.
- Many companies still sit at $500k–$1M ARR but struggle to stand out.
- AI‑driven growth expectations now push founders to hit $0–$3/4M ARR quickly.