Raising a Series A in Today’s Market—What Founders Need to Know

Once seed funding is complete and you are ready to offer shares of your company in exchange for venture capital, you are in the Series A stage. This round typically represents the first significant infusion of institutional capital for startups.

Raising funds at this stage depends on traction—how clearly your product is working in the market. Investors become more selective, prioritizing companies that can show a credible path to growth and durability. They want to see proof of market viability, early revenue indicators, or strong evidence of demand.

According to analysis by McKinsey & Company, the median Series A raise for biotech companies in 2024 was $58.7 million.

Series A funding allows companies to scale—advancing product development, building out a go-to-market function, expanding headcount, and absorbing early operational losses as the business grows.

For startups preparing to raise, two CEOs share what to expect during this stage.

RELATED: How to Raise Pre-Seed Funding, From Biotech Founders Who’ve Done It

Expect Hundreds of Conversations Before You Get a Yes

Securing Series A funding requires persistence and volume. Once you have a refined pitch deck that communicates the founders’ background, the innovation, the target market, and the growth thesis, it’s time to get it in front of investors.

In October 2024, DeepLook Medical, which is developing software to help clinicians interpret medical imaging, closed its Series A. CEO Marissa Fayer said it took hundreds of investor conversations and extensive due diligence to reach the finish line.

“Especially at a small Series A, it’s very much angel-network driven. Often, you have to talk to every single angel,” she said.

Because DeepLook is in software and digital technology, she said the process differs from therapeutics.

“For therapeutics, they have a much bigger gain. They have to raise a lot more money for a lot of different clinical trials,” Fayer said.

She also noted that expectations for traction have shifted earlier. “It is often unrealistic to ask a seed-stage company—unless you’re direct-to-consumer—to have annual revenue, year-over-year metrics, and repeat customers,” she said. “That’s the point of Series A—to go get those metrics and those customers.”

RELATED: How to Nail Your Seed Raise—From Biotech CEOs Who’ve Been Through It

Expect a Longer Road and a Lot of “Not Yet”

Connecting with potential investors doesn’t always lead to a check. When investors are interested, they present a term sheet outlining their offer, structure, valuation, and conditions. From there, founders negotiate.

Fayer said that in the current market, it is taking twice as long to secure committed capital. “It’s a lot of frogs hoping you get a prince,” she said. “It’s a lot of work and literally a full-time job for the CEO, in addition to running a lean team.”

“The companies that were struggling in 2022 to 2023—the ones that had existing investors—those investors doubled down, which means that capital isn’t available for new companies,” she said. “Somebody in their portfolio needs an exit, but those exits are either in the next round or postponed by a year or two.”

The upside, she added, is a growing number of angel networks and small VCs entering the space. “But there are far more startups competing for the same dollars,” she said.

DeepLook is now preparing to raise a Series B and expects revenue to support the remainder of its growth.

“We’ll go for an acquisition hopefully sooner rather than later,” Fayer said.

Your Network Compounds at Series A

At Series A, warm introductions matter even more than in earlier rounds, because investors want signals of staying power—not just scientific merit.

That has been the case for Oriana Papin-Zoghbi, Co-Founder and CEO of AOA Dx, which developed an AI-driven blood test for the early detection of ovarian cancer. The company is actively raising its Series A.

“Our company has made a tremendous amount of progress. We just published exciting data that was picked up by ABC News and other outlets,” she said. “The company has progressed beyond our expectations despite the contraction in venture markets.”

Because early-stage biotech is still difficult to back pre-revenue, long-term relationship capital often becomes the bridge to institutional investment.

“I already have fantastic investors backing me, and I know how to run a raise, so mechanically it becomes easier after the first one. They compound,” she said.

But she emphasized discipline and runway planning. “You can’t wake up one day and decide to fundraise and expect it to close in a few months,” she said. “You need time, materials, and a well-run process—then if it happens faster, that’s a bonus.”

She suggests tracking conversations and knowing when to adjust burn. “And know when to pull the levers—spend slower if needed,” she said.