CM Weekly: ARR Growth, Extension rounds, When to Use SAFE Notes
Chris McCann's weekly newsletter on technology, startups, and venture capital.
Written by Chris McCann, General Partner @ Race Capital. More about me.
🗞️ Interesting Reads
The differences between bridge rounds, extension rounds, and in-between rounds.
On average seed companies have about ~18 months to prove themselves before a series A round.
ARR growth, customer acquisition, and customer acquisition costs have all gotten, increasingly tougher from 2023 to 2024.
AI startups are growing revenue faster than their SaaS counterparts, however the margin profiles are different for AI businesses as well.
Market map of AI chip startups.
Despite all of the AI innovation the volume of seed rounds (and all other rounds) are down YoY.
The typical startup uses SAFE notes for fundraising up until ~$5M in venture funding, after that priced rounds are more typical
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