What should I think about now that I have venture capital funding?
Takeaway: Closing a venture round is not the finish line, it's the start of a new race; you must immediately shift your focus to professionalizing your operations, executing against your plan, and managing your new relationship with your board of directors.
You have just closed your Series A financing. The money is in the bank, and your new venture capital partners are on your board. This is a moment for celebration, but it is also a moment of profound transition. Your company is no longer just a founder-led project; it is a professionally-backed enterprise with a new set of stakeholders, expectations, and responsibilities.
The period immediately following your first priced round is critical. The actions you take now will set the tone for your new partnership with your investors and lay the foundation for your next phase of growth. Your focus must now shift from fundraising to execution and professionalization.
1. Professionalize Your Operations
The "scrappy startup" mindset that got you here needs to evolve. You now have the capital and the obligation to build a professional, scalable organization.
Financial Controls: Work with your accounting firm to implement more robust financial controls and a professional monthly reporting process for your board.
HR and Hiring: With new capital to hire, you need to establish a formal, compliant HR process for recruiting, onboarding, and managing your growing team.
Board Governance: You are no longer just having informal chats with your co-founders. You are now managing a formal Board of Directors. This means preparing detailed board decks, running structured meetings, and taking professional minutes.
2. Execute Against Your Plan
You raised this money by selling your investors on a specific plan. You told them that if they gave you $X million, you would achieve Y milestones in Z months. Now you have to deliver.
Focus on Milestones: Your entire company's focus should now be on hitting the key technical and business milestones you outlined in your pitch deck.
Manage Your Burn Rate: You must be a disciplined steward of your investors' capital. Work with your board to manage your burn rate and ensure you have enough runway to reach your next major value inflection point.
3. Manage Your New Board and Investor Relationships
Your lead investor is now your partner. Building a strong, transparent, and collaborative relationship with your board is one of your most important jobs as CEO.
No Surprises: The cardinal rule of board management is "no surprises." You must communicate openly and proactively, sharing both the good news and the bad. Your investors are there to help you solve problems, but they can only do so if they are kept informed.
Leverage Their Expertise: Your VC board member has seen this movie before. They have a network and a set of experiences that can be invaluable to you. Treat them as a strategic partner and a mentor, not just as a boss you have to report to.
Closing your Series A is the end of the beginning. It is the moment your startup "grows up." By shifting your focus to professional execution and active board management, you can build on the momentum of your fundraising success and create a foundation for a truly great company.
Disclaimer: This post is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading or relying on this content does not create an attorney–client relationship. Every startup’s situation is unique, and you should consult qualified legal or tax professionals before making decisions that may affect your business.