5 lessons for founders raising Series A and VC Red Flags to Avoid

Five key lessons founders took away from the session:

1. Series A is a step change, not a continuation of Seed
Vision alone is no longer enough. Investors expect predictable revenue, reduced customer concentration and evidence that the business is already operating at venture scale, not just planning to.

2. Your financials will be tested, not taken on trust
Series A investors interrogate the detail. Weak models, unclear assumptions or a slow, disorganised data room quickly undermine confidence and stall momentum.

3. Fit matters more than interest
Many rounds fail not because the business isn’t strong, but because founders spend time with funds that were never right. Alignment with a VC’s mandate, sector focus and return expectations is critical.

4. Differentiation and customer proof must be explicit
Investors need to clearly understand why you win, why customers stay, and why that advantage will last. Real customer validation carries far more weight than broad market claims.

5. How you run the raise is a signal in itself
Investors assess how founders operate under pressure. A well-structured, disciplined process builds trust and conviction; slow responses, overstatement or signs of desperation do the opposite.

These insights come at an important moment. With increased focus on supporting scale-ups and growing recognition of their role in driving UK jobs, productivity and innovations highlighted in the recent budget, helping founders approach Series A with realism and rigour matters more than ever.

We’re hugely grateful to Ian for such an open and informative session, and proud to be part of a thriving UK scale-up community committed to learning from those who’ve already walked the path.

>> Read 10 red flags that kill Series A rounds – and how founders can avoid them by Ian merricks on Startups Magazine