Series A Readiness ARR Metrics
Series A SaaS metric thresholds: $1-2M ARR, >100% YoY growth, NDR > 110%, gross margin > 70%, burn multiple < 2.5. This scores readiness.
| ARR | — |
| Growth YoY | — |
| NDR | — |
| Gross margin | — |
| Burn multiple | — |
| Score | — |
Series A readiness depends on 5 core metrics: ARR ($1M+ typical floor), growth rate (100%+ YoY), net dollar retention (110%+), gross margin (70%+ SaaS), burn multiple (<2.5×). Hit all five and Tier 1 VCs will engage.
Bessemer Good/Better/Best Framework
Public benchmarks from State of Cloud reports. 'Good' = top 50%, 'Better' = top 25%, 'Best' = top 10%. Hitting 'Better' across most metrics = strong Series A.
NDR (Net Dollar Retention)
(Starting ARR + expansion - churn - downgrades) / Starting ARR. Above 100% = expansion exceeds churn. Top SaaS hits 130%+ via aggressive upsell + minimal churn.
Burn Multiple
Net burn / Net new ARR. 1× = $1 burned per $1 new ARR (great). 2-3× standard. >5× = capital-inefficient growth. Top quartile <1.5×.
Common Missing Factor
Most early startups have growth but lack NDR data (too young) or gross margin clarity. Top investors weight ARR + growth heavily for Series A. NDR matters more at Series B+.
Last updated May 2026. Sources: Bessemer State of Cloud, OpenView Benchmarks.