A brief conversation between Jason M. Lemkin and another speaker about when investors begin to prioritize profitability. The speakers argue that profitability becomes a board-level topic post-Series B, while seed-stage focuses on product shipping and finding product–market fit; Series A expectations include growing revenue (example: from ~$1.5–2M at seed to $5–10M during Series A).
So maybe is the question that will investors actually even care about profitability? We're not going so far that early stage investors care about profitability like once.
You'Re past post series B. Yeah that's when you're having the conversation about at your board with your board and then your investors about path to profitability. Yeah I would say for the like seed and A I think seed is about ship your product and get to product market fit right and start to get a sense of what the margins of your business are who your target like who's your ICP and do they love it right. And then A is really like you know can you get from you know let's say you know from post seed. Let's say if you're at a million and a half or $2 million when you raise your A then you probably need to get to between 5 and 10 in revenue during your A which is a change from where we were.
