∞Direct answer
Direct answer
Show a few facts with dates. Tie sales or use to acts by real buyers. Say how you made each number. Say where it may not tell the full story. Carta says A-round backers look for product fit, sales, unit costs, and a money plan. [1] This pack can aid a talk. It cannot win funds.
Find signs that buyers come back
A big sales number is not enough. Show what changed in a set time. Then show what buyers did to cause the change.
Pick facts that suit the firm. A software firm may show paid use, renewals, and more spend. A market site may show repeat buys and sales. Do not call one large deal broad demand.
YC says progress should show what was done and how long it took. [3]
- One buyer group and the pain it pays to fix.
- A dated trend for the few facts that count.
- The buyer act behind each fact.
- A clear note on what is not yet proved.
Put buyer action near sales
Put a buyer view next to the sales total. Split new sales, more spend, less spend, and lost buyers. Give the time span and rule for each fact.
CRV calls for an annual recurring revenue, or ARR, bridge. It splits new sales, growth, loss, and churn. It also flags buyer focus and contract terms for review. [2]
Use a cohort table if you can. A cohort is a group that starts in one time span. It can show who stays, spends more, or leaves. Say how old each group is.
- Sales from new, old, and lost buyers.
- Buyer count, mean deal size, and renewal state.
- The share of sales from the top buyer, if it matters.
- A cohort table with dates and a clear rule.
Give each fact a rule
List the rule, data source, date span, and owner for each main fact. Keep cash in, booked sales, and plans apart.
Break facts into key groups. Use buyer type, plan, sales path, place, or product. Mark small groups as small. One mean can hide a key gap.
Show what went into the cost to win a buyer. State the margin rule used for payback. CRV says such facts help test if growth can scale without too much cash burn. [2]
- Fact name, rule, source, date span, and owner.
- Data gaps, one-time events, and rule changes.
- Facts by key buyer or product group.
- One person who can answer a follow-up.
Make a check file
Set up a file list before a deep check starts. Give each file a date and owner. Keep just final files in the main room.
CRV names finance files, a cap table, share files, and intellectual property files as A-round room items. [2] Carta says later checks may cover finance, past funds, and founder facts. [1]
Share private files only as needed. Ask a lawyer or local adviser what rules fit your firm. In the US, a firm that uses a Regulation D exemption must file Form D after its first sale. [4]
- Current cap table and signed share files.
- Dated finance files and a cash view that ties out.
- Buyer deals, renewals, and a fact source file.
- Signed IP and key work files.
Join proof to use of funds
Say what the new cash will test or build. For each main use, name a goal, owner, time, and cost. Keep the plan small enough to tell with ease.
Give a base plan and list its key bets. A plan is not a fact. Say what may make you change it.
Carta says backers want a firm that can turn product fit into repeat sales and growth. [1] Your proof should show that path. It should not claim a result.
- The sum sought and the main work it would fund.
- Goal, owner, time, and cost for each work stream.
- Cash life in the base plan and key bets.
- The next fact you plan to get.
FAQ
Frequently asked questions
Is there one A-round traction number?
No. The right fact rests on the firm, market, and buyer. Carta says AI firms can skew a broad mark. Match your firm with like firms. [1] Show your trend, rule, and gaps.
Can a few early buyers count as traction?
They can be early signs. Show who pays, why they buy, what they use, and what came next. Do not call a few deals proof of broad demand.
What if my stay data is short?
Show the cohorts you have. Give each group a start date and age. Do not turn a short view into a full-year claim. CRV calls cohort work a common check ask. [2]
What should be ready when a backer shows interest?
Have dated facts, finance files, a cap table, key deals, and owner files ready. Keep an index and name an owner for each file. CRV flags these A-round check files. [2]
Does a clear proof pack win an A round?
No. It can make your facts clear and easy to check. It does not make product fit, cut all risk, set terms, or promise funds.
REF
Sources
- 1
- 2
- 3
Y Combinator
How to Pitch Your Company ↗ - 4
U.S. Securities and Exchange Commission
Form D ↗