VC: $3M ARR no longer gets a Series A meeting — the bar has moved
MartinGTobias · x · 2026-11-05
- Investor Martin Tobias: founders at $3M ARR often can't even get a first Series A call today — "you didn't fail, the bar moved."
- His advice: decide now, not at 4 months of runway; get to default alive by cutting burn until revenue covers costs; stop hiring ahead of revenue (every hire must pay for themselves within a year); keep best customers obsessed — profitable growth comes from expansion, not new logos; talk to investors early.
- A profitable $3M-ARR company has options (grow on its own terms, raise later from strength, or sell); a company out of cash has none.
Related event: VCs Raise Series A Bar: $3-5M ARR No Longer Gets a First Meeting(2 posts)→
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