Investment Stages & Milestones

What the greatest technology investors say about Investment Stages & Milestones

Angels vs. Series A vs. Series B Characteristics

Mark Suster Partner Upfront Ventures and former entrepreneur

“[] Angel investors [] [invest] at the highest risk because much less is proven in the business.  They expect and need to earn a much higher return for the risk they’re taking. 

[] When a [Series] A investor gets involved, usually product has shipped, usually [there are] the first clients and some proof points, management team is better and solutions are more thought-out.   

[] [In] Series B [investors] are looking at metrics [] like how many clients have [been] signed up, [] costs of acquisition, [] conversion rates, [] LTV (lifetime value of customer), [] churn, and they want to see data, facts and figures.

[] Check sizes grow as the risk is decreased and usually coincides with the founders themselves needing more capital.”   Mark Suster-This Week in Venture Capital #14 with Rick Smith, founder of CrossCut Ventures, Jul 15, 2010  @ 50-52 min into interview;  http://www.bothsidesofthetable.com/2010/07/15/this-week-in-vc-with-rick-smith-of-crosscut-ventures/