Last updated: 2 November 2026
Investors look at revenue scale and growth, retention, efficiency and unit economics. Typical Series A benchmarks include ARR, growth rate, NRR, burn multiple, CAC payback, LTV:CAC, gross margin, dilution and round size.
What do investors look at for a Series A?
Investors look at four broad areas: revenue scale and growth, retention, efficiency, and unit economics. The CRV article structures its guidance around these areas. All benchmarks here are US-centric and vary by source, so treat them as ranges rather than fixed targets. UK founders should also check how any US benchmark maps to their own market, customer base and cost base.
How much ARR do you need?
CRV says median Series A revenue reached $2.5 million in 2025, with the bar now often reaching $5 million or more. Search summaries suggest B2B SaaS companies typically raise at $1 million to $3 million ARR, and that the bar has risen to $2 million to $3 million, even $4 million. AI companies often raise at $1 million to $3 million ARR, or pre-revenue on team strength. These search figures are secondary and individual pages were not opened.
What growth rate?
Investors want a few million of ARR growing two to three times a year. A threshold of two times or more year-on-year is cited, with 100 per cent or more growth linked to premium valuations. These figures come from search summaries, so they should be treated as indicative ranges rather than rules.
What retention?
CRV says median net revenue retention commonly sits a little above 100 per cent, and founders should aim for the upper quartile. Gross revenue retention for private B2B SaaS runs in the high-80s to low-90s. Search summaries add that horizontal B2B SaaS should show 110 per cent or more NRR, while one summary says AI-native SaaS shows 40 per cent GRR and 48 per cent NRR against an 82 per cent B2B SaaS median NRR. That AI-native figure comes from one summary and should be treated with caution. See our ARR, MRR and NRR guide for definitions.
What efficiency numbers?
Burn multiple is net burn divided by net new ARR. CRV says investors expect that number to drop below 2.0x, with the strongest companies operating closer to 1.0x. The ranges given are 1.0x to 1.5x strong, 1.5x to 2.0x solid, and 2.0x to 3.0x concerning. Private SaaS CAC payback is typically around 20 months. LTV:CAC should clear three to one as a floor. As a worked example, if a company burns £1.2 million in a year and adds £0.8 million of net new ARR, its burn multiple is £1.2 million divided by £0.8 million, which is 1.5x. See our CAC, LTV and payback guide.
What about gross margin and AI?
AI products had an average gross margin of 45 per cent in 2025, according to ICONIQ State of AI, July 2026, as cited in our margin guide. That compares with 65 to 70 per cent typical SaaS, per Bessemer, also cited in our margin guide. See our AI versus SaaS margin guide.
Valuation and dilution at Series A
A search summary of Carta data says median Series A dilution was 18 per cent over the six months to July 2026. Median round size was $10 million to $15 million. Valuation figures vary widely, and the top 5 per cent of Q2 2026 rounds exceeded $500 million post-money. These are secondary search summaries. See our dilution guide.
Checklist
A practical Series A checklist includes ARR and growth, NRR and GRR, burn multiple, CAC payback, gross margin, and runway to the next milestone. See our runway guide. No single metric decides a round; investors usually look for a pattern across revenue quality, retention, efficiency and margin.
| Metric | Benchmark range |
|---|---|
| ARR | CRV median $2.5m in 2025; bar often $5m+; B2B SaaS $1m-$3m; AI $1m-$3m or pre-revenue |
| Year-on-year growth | 2x-3x; 2x+ threshold; 100%+ premium |
| NRR | median a little above 100%; aim upper quartile; 110%+ horizontal B2B SaaS |
| GRR | median high-80s to low-90s; AI-native 40% in one summary |
| Burn multiple | below 2.0x; strong 1.0x-1.5x; solid 1.5x-2.0x; concerning 2.0x-3.0x |
| CAC payback | around 20 months |
| LTV:CAC | at least 3:1 |
| Gross margin | AI 45% in 2025; SaaS 65-70% |
| Dilution | median 18% |
| Round size | median $10m-$15m |
Frequently asked questions
Are these benchmarks UK-specific?
No. The benchmarks are US-centric and vary by source. UK founders should treat them as ranges and adjust for their own market and cost base.
Can an AI company raise Series A pre-revenue?
Yes, according to the search summaries. AI companies often raise at $1 million to $3 million ARR, or pre-revenue on team strength. That is a secondary summary, not a verified figure.
What is a burn multiple?
It is net burn divided by net new ARR. A company that burns £1.2 million and adds £0.8 million of net new ARR has a burn multiple of 1.5x. Investors expect the number to drop below 2.0x, with the strongest companies near 1.0x.
What NRR should a founder aim for?
CRV says median NRR commonly sits a little above 100 per cent, and founders should aim for the upper quartile. Search summaries also cite 110 per cent or more NRR for horizontal B2B SaaS. These are ranges from different sources.
Why is gross margin lower for AI products?
The cited figures put AI products at an average gross margin of 45 per cent in 2025, against 65 to 70 per cent for typical SaaS. The sources do not explain the cause, so founders should test their own cost structure rather than assume the average applies.
Sources
Figures and prices were checked on 2 November 2026; check the linked sources before relying on them. This article is general information, not tax, legal or investment advice.
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