Q: What is the typical and expected burn rate of the funds raised from a seed round before proceeding with the Series A round? I know this time-frame will vary from case to case, obviously, but with a typical internet start-up, is there an average or expected burn rate of the seed round funds before achieving the milestones needed to raise VC financing? 6 months, 12 months, 18 months?
A: (Brad) 12 months is a typical target. You want to give yourself enough time to make real progress and still have time to pull together a financing. You should plan to have to spend six months to raise your Series A round, which gives you six months of heads down work and six months of work + fundraising.