Series A Unit Economics Readiness Checker
A decision engine that evaluates your SaaS unit economics to determine if you’re ready to raise a Series A.
Answer the following questions to assess if your SaaS startup is ready for a Series A raise.
Enter the total recurring revenue you generate each year.
Average monthly revenue per customer.
Gross margin expressed as a percent (e.g., 70).
Monthly churn expressed as a percent (e.g., 5).
Total spend on sales and marketing each month.
Number of new paying customers per month.
Select the stage that best describes your company.
Annual growth percentage (e.g., 120).
Calculate LTV divided by CAC.
Months it takes to recover CAC from gross margin.
Your metrics fall short of Series A benchmarks; significant improvements needed.
What to fix (7)
LTV:CAC ratio ≥ 3
CriticalA 3:1 ratio indicates strong unit economics and investor confidence.
Fix: Reduce CAC, increase ARPA, or improve retention to boost LTV.
LTV:CAC ratio ≥ 2
MajorA 2:1 ratio meets the minimum VC heuristic for Series A viability.
Fix: Optimize cost structure or pricing to improve the ratio.
ARR meets Series A benchmark
MinorSeries A investors typically expect ARR of at least 1M to demonstrate scale.
Fix: Increase revenue through upsells, cross-sells, or expanding market reach.
ARPA is greater than zero
MinorZero ARPA indicates no paying customers or data entry error.
Fix: Verify your ARPA calculation and ensure you have paying customers.
Sales & Marketing spend is greater than zero
MinorZero spend indicates no acquisition effort, which is unsustainable for growth.
Fix: Allocate budget to sales and marketing to drive customer acquisition.
New customers per month are greater than zero
MinorZero new customers means no growth in the pipeline.
Fix: Implement lead generation and conversion strategies to attract new customers.
Year-over-year growth ≥ 100%
MinorHigh growth demonstrates market traction and scalability.
Fix: Accelerate product development and market expansion to boost growth.
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