In series A, you’d typically expect to have $1 million plus in revenue, sometimes more depending on the sector. With seed, it’s less clear. What is meaningful revenue at the seed stage? It’s more about the maturity and trajectory of the company than a number. Any revenue is better than no revenue, but there's a continuum of excitement for investors.

The least exciting situation would be that you start with no revenue. Slightly more exciting is that you’ve launched with some revenue, some customers, but no velocity (growth). What gets investors really excited is launching the product and seeing velocity — typically at least 20% month-on-month growth. This magic 20% number suggests an organic flywheel, meaning people are referring others, adoption is great, and the product resonates. If your month-on-month growth is below that, it signals a lack of virality and adoption.

So, what do you do if you're not hitting that growth?

For one, if you are in a B2B space or extremely seasonal business, explain the seasonality. Illustrate that the slow growth is normal for your business and that it will pick up. Second, if your launch was limited in scope, explain that being in beta was purposeful because your funds are limited and you can’t support a large customer base at this point. Highlight that this is precisely why you need investors — to move out of beta and scale up. Third, plan for growth. Before you fundraise, do everything possible to set the stage for investor expectations.