Mastering Series A: key insights from industry experts

Attendees received expert guidance on what investors seek, gained practical strategies from real-life success stories, and made meaningful connections with other founders. The event provided actionable advice and valuable networking opportunities, equipping founders with the tools and knowledge necessary to scale their businesses and achieve their fundraising goals.

We have summarised the key takeaways from the event to ensure that they are easily accessible to all who wish to benefit from this knowledge.

John O’Connell, a technology entrepreneur and investor at Scaleup Group, guided participants through the key elements investors look for, including business scalability, market potential, and team dynamics.

When you receive a cash injection, it’s important to spend the money both quickly and wisely—two actions that may seem contradictory. That's why having experienced advisors and mentors around you during this process is invaluable. As a founder, your role will inevitably evolve significantly, and the right guidance can make all the difference.

We’ve all heard the saying, “Fail to prepare, prepare to fail." In fundraising, preparation is everything. You may present one set of figures to investors, only to have them change just weeks later due to updated forecasts.

Consistency in your finances is crucial, as is being prepared with key metrics such as revenue figures, the number of clients, retention rates, and average return per client. Being able to answer these questions confidently is vital for a successful funding process.

The first four checkpoints—ARR, growth rate, customer base, and retention rate—are critical in convincing investors of a solid product-market fit. By focusing on achievable goals and setting realistic, well-founded expectations, you build trust with potential investors. The funds we work with typically expect returns of three to five times their initial investment, so it's essential to demonstrate both strong potential and a clear path to achieving those returns.

Securing funding is a commitment that requires not only strategic preparation but also patience, as the process can take considerable time. One of the key stages is due diligence, which typically takes eight to ten weeks. Founders must be fully committed to the process and understand that it doesn’t end when an offer is accepted—there is still a lot of work to be done.

Clients should be aware that the funding journey can stretch over several months, and it is important to maintain realistic expectations. Avoid posturing or trying to rush the process.

Investors value transparency and commitment, and a clear, honest timeline will help build trust and ensure a smoother path to closing the deal.

The panel, which included Armenak Mayalian, CTO and co-founder of Toggle AI and John Radford, Client Services Director at LogiNet International, covered a wide range of topics. These included the Series A funding process and strategies for achieving business goals. Much of the conversation focused on the critical decision for startups: whether to hire a CTO or focus on building an engineering team.

The discussion highlighted the importance of speaking the language of technical decision-makers. It’s not about selling directly to technical professionals; it’s about communicating effectively with them. It’s vital to have a solid understanding of both the underlying technology and the management processes involved. This dual knowledge helps bridge the gap between technical and business perspectives, ensuring better alignment and decision-making.

Investors tend to focus on outcomes rather than the technical details of how a product is built. What matters is the result. For example, customers don’t care if your product runs on Kubernetes, uses a sophisticated programming language, or if you perform code reviews or unit tests. Their primary concern is the value the product delivers.

In the early stages, startups often don’t need a CTO, as the focus should be on proving market fit and gaining traction. It’s crucial to establish the existence of a market and validate product-market fit before considering the need for a CTO. A CTO is only necessary if the technical needs of the startup really require one.

Many startup founders are reluctant to bring advisors on board or even seek outside advice. However, it’s not always necessary to have a technical co-founder. There are numerous startups, some of which have no engineers, that are successfully building platforms by focusing on customer acquisition and market growth. Some startups have reached Series B funding without any in-house engineering, proving that not all startups need a CTO. In such cases, using a fractional CTO can be an effective solution.

One company successfully reduced its AWS costs from £17,000 to £10,000 per month by optimising its infrastructure. This highlights the importance of understanding and managing costs effectively. By carefully analysing and adjusting their infrastructure, they were able to achieve significant savings, demonstrating the value of cost management in maintaining a healthy bottom line.

Team augmentation offers significant benefits for start-ups looking to remain flexible and cost-effective. Working with an agency, rather than hiring an in-house CTO, can provide access to a dedicated team with a proven track record. This approach allows companies to tap into specialised expertise on an as-needed basis, without the long-term commitment and higher costs associated with hiring full-time executives.