What valuation should I expect for my Series A?

Full Explanation

Series A valuations are driven by: (1) Revenue or traction (SaaS typically values at 5-10x ARR; marketplaces at 3-5x GMV; usage metrics for consumer apps), (2) Growth rate (a company growing 30% YoY commands higher multiples than one growing 10%), (3) Team and market opportunity (exceptional team in large market attracts premium valuations), (4) Competitive intensity (crowded markets see compressed multiples). A SaaS company with £100K ARR growing 30% monthly might be valued at £500K-£1M (5-10x revenue multiple). One with £500K ARR growing 10% monthly might be £2M-£3M. Marketplace companies are valued lower per unit of economic activity (3-5x GMV) because unit economics and LTV are harder to assess. Consumer apps are valued on user growth and engagement metrics, not revenue. For most Series A rounds, pre-money valuations range from £1.5M-£5M with £500K-£2M check sizes. Hot companies in hot sectors raise at higher multiples and faster. Cold companies in crowded markets raise at lower multiples. Geography also matters: London Series A multiples are lower than Silicon Valley. Founders should benchmark against recent comparable companies in their category using Crunchbase, PitchBook, or talking to other founders and advisors.

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