From Seed to Series A

Earlier this week at TechCrunch Disrupt, Greylock partner Corinne Marie Riley spoke about what founders need to know when raising a Series A. As the first partner to founders, we at Greylock are focused on backing founders on day one and working with them through their company’s lifecycle. So what do we look for in new investments, and when advising existing Greylock portfolio companies on the Series A round? 

Early stage founders often want to know what types of milestones they need to hit in order to raise a Series A. In particular, what annual recurring revenue (ARR) VCs expect to see when evaluating a Series A investment. Corinne reflected there is no set milestone or key number that Greylock is looking for. Instead we’re looking at the quality rather than the quantity of ARR.

“We’re looking for a customer base, even if it’s a smaller number than a competitor, that is repeatable and targets the right ideal customer profile of the company.” 

She gave the example of Braintrust, an AI infrastructure company that Greylock led the seed round in and doubled down on when the company raised their Series A. She shared that Braintrust focused on working with companies at the forefront of AI like Stripe, Notion, Zapier, and Vercel, rather than going after other potential customers just for ACV.  

“Having that focus on the best customer base is what allowed Braintrust to be the number one company in their space.”

Beyond ARR and customer quality, Corinne also spoke of the importance of the technology that a company is building, and how Greylock looks for a product that can dovetail into a large scale company. 

“We're looking for a piece of technology that can be a wedge into a broader product in an important market that is better than or can replace what has existed before.” 

And finally, she offered advice for founders during a pitch, noting that having a deck and well-prepared materials that enable the VCs you’re talking with to understand your company is table stakes. A founder’s goal with a pitch is to also empower the VC to be able to talk to their partnership about how amazing a company is, which leads to a very quick and successful funding round.

If you are thinking about starting a company, or are a founder in the early stages of company-building, consider doing so with Greylock Edge. Apply or reach out directly to any Greylock investor for more info.

Now Hiring: Series A Companies

Check out some of the open jobs at Greylock backed Series A startups:

• Senior Product Manager - San Francisco
• Staff Software Engineer - Systems - San Francisco
• SDR/BDR - Enterprise Software - San Francisco

Get in touch if you want to learn more about joining a Greylock portfolio company.

Portfolio News

Abnormal Security

Mike Britton, chief information security officer at Abnormal Security, wrote a piece for SC Media arguing that teams must embrace AI-powered tools to mitigate the rising tide of email attacks on the healthcare sector. The company was featured on the Fortune Cyber 60 list.

Apiiro

Apiiro CEO Idan Plotnik shared with NYSE how Apiiro's ASPM platform helped a fortune 10 enterprise design, develop, and deliver secure software faster—and save tens of millions of dollars annually.

Braintrust

Braintrust was featured on The Information's 2024 50 Most Promising Startups list in the AI Applications category.

Cato Networks

Cato Networks announced the winners of its inaugural Americas Partner Awards which celebrates partners that demonstrate commitment to the Cato customer experience, innovation with the use of Cato products, and outstanding business results. The company was featured on the Fortune Cyber 60 list.

Cresta

Cresta announced the Cresta Voice Virtual Agent, which provides 24/7 personalized and empathetic customer experiences, handles complex, multi-step workflows and works seamlessly with and learns from human agents.

Cribl

Cribl was featured on the Fortune Cyber 60 list.

Dazz

Dazz was featured on the Fortune Cyber 60 list.

FERMÀT

FERMÀT was featured on The Information's 2024 50 Most Promising Startups list in the commerce category.

Magic Eden

Magic Eden announced that it has expanded its blockchain infrastructure by adding BeraChain and ApeChain to its platform.

Nauto

Nauto and Beans.ai announced a strategic partnership to offer a comprehensive solution tailored to the unique needs of commercial fleets engaged in the last mile delivery.

Notable

Notable announced the launch of Flow Builder, a low-code interface that allows users to build, customize, and deploy AI-powered Agents across a wide array of operational workflows to eliminate administrative burdens, reduce operational costs, improve patient engagement, and supercharge productivity.

Ramp

Ramp launched the Ramp App Center: a central hub offering best-in-class tools for finance organizations.

Rubrik

In an interview with CRN, Rubrik CEO and co-founder Bipul Sinha discusses data security in the GenAI era and Rubrik's role, the biggest areas of traction for the company, and cyber resilience.

Upwind Security

Upwind was featured on The Information's 2024 50 Most Promising Startups list in the SaaS & Security category. The company was also featured on the Fortune Cyber 60 list.

Wealthsimple

Wealthsimple announced that it is launching a Premium and Generation client rewards program that includes an UberOne membership, airport lounge access with DragonPass, and subscriptions with Strava and The Globe and Mail.

Wiz

Wiz was featured on the Fortune Cyber 60 list.

Executive Briefings

Greylock hosts CXOs for highly curated briefings and makes targeted introductions based on a company’s priorities — with the goal of arming organizations with vital insights to help them address its current and future challenges. Greylock portfolio companies benefit from product feedback, advice on product-market fit, and opportunities to co-develop in support of an organization’s technology needs. Reach out at cxo@greylock.com to schedule an executive briefing.

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