How did a startup raise millions without a single dollar in revenue?
So, does raising money hinge on revenue? Not quite. ❌
Here’s the story: it was three years before Canva saw any revenue. And yet, VCs were lining up.
Canva did it by selling a vision, not just numbers. Investors saw the potential for explosive growth and believed in the team, the market opportunity, and the unique solution they were building. Their founders showcased their ability to scale and attract users, painting a clear path to future revenue—and that was enough to secure millions.
So, if revenue wasn’t the hook, what was?
VCs are betting on future revenue potential. 💡
- Once Canva flipped the switch, revenue soared from $0 to $105M in four years. 🤯
- Revenue, in a sense, reflects what’s behind you… but raising is all about VCs believing in your ability to hit venture scale in the future. 🌠
Canva Funding: List of all funding rounds of Canva
Does past traction matter? Absolutely. Especially today.
Few companies can raise with no revenue, and those that do usually have:
- A standout team 🔥
- A major breakthrough 🌐
- Or some other X factor that makes them unforgettable 🚀
But here’s the kicker:
Revenue alone doesn’t guarantee funding. 🤯
There are startups today hitting revenue targets and still struggling to raise.
Why? Because they were sold on a formula that’s evolved:
- 2–3x YoY growth = successful raise
- $3M ARR = Series A
So, they pour in their time, burn their runway, hit those numbers—only to find out that it’s still not enough. And suddenly, they’re nearly out of runway. 😞
But the reality is…
Leading indicators vary by company, ideal customer profile, growth tactic, and stage. They’re nuanced, often hard to pin down. Sometimes, it takes intuition from the VCs.
So, what do VCs say instead?
“You need more traction.”
Most founders hear that and think: “Okay, more users, more revenue, more growth—that’s the key.”
But now you know there’s more to it. 🌱
Here’s the takeaway: dig deep. Figure out which leading indicators matter for your business, those that’ll de-risk the future for VCs.
And let those indicators be your guide. ✨
Top 10 Competitors of Canva
Ready to unlock funding without waiting for revenue? Discover what it takes to secure millions by focusing on the future, not just the bottom line.
