SaaS Company Post-Seed — Series A Preparation
Post-seed SaaS company needed financial infrastructure for Series A. Inconsistent metrics, unformalized revenue recognition, cap table not integrated with financial narrative.
The Challenge
This company had raised a successful seed round and was building toward Series A. The product was gaining traction, but the financial infrastructure wasn't ready for the scrutiny that comes with institutional fundraising.
SaaS metrics were being calculated inconsistently — different definitions depending on who was pulling the numbers. Revenue recognition hadn't been formalized, which would become a red flag during due diligence. The cap table existed in isolation, disconnected from the broader financial narrative. The founders knew these gaps existed but didn't have the bandwidth or expertise to close them while also building the product.
What We Built
Metrics & Reporting
We established proper SaaS metrics with consistent, defensible definitions:
- Annual Recurring Revenue (ARR) and Monthly Recurring Revenue (MRR)
- Customer Acquisition Cost (CAC) with proper allocation methodology
- Lifetime Value (LTV) based on actual retention data
- Churn — both logo and revenue — with clear measurement periods
Cohort Analysis
We built cohort analysis that gave the team visibility into acquisition behavior, retention patterns, and funnel weak points. This wasn't just reporting for investors — it directly informed product and go-to-market decisions about where to focus limited resources.
Financial Modeling
We connected product milestones to revenue projections, creating a model that served dual purposes: internal resource allocation and external fundraising conversations. The model showed investors not just where the company was going, but the specific assumptions and milestones that would get it there.
Cash Runway
We modeled multiple growth and funding scenarios — what happens if Series A closes on time, what happens if it takes six months longer, what happens if the round is smaller than planned. The founders could make hiring and spending decisions with clear visibility into the runway implications.
Revenue Recognition
We formalized revenue recognition policies aligned with ASC 606 — a critical step that many early-stage companies overlook until a potential investor's due diligence team flags it as a problem. Getting this right early saved significant time and credibility during the fundraise.
Compensation Design
We designed team incentives that aligned with growth objectives while managing burn rate. The structure balanced competitive compensation with equity, keeping the team motivated without putting unnecessary pressure on cash runway.
Engagement Model
15-20 hours per month on retainer, with an option for an equity component. This structure aligned our interests with the company's success and kept the cash cost manageable during the pre-Series A period.