New fundraising rounds aren’t just exciting for startups; they also make a statement to competitors, current investors, customers, and the general public about a startup’s value and its prospects for the future.

This is especially true during the Series A round. For most startups, the Series A is their first significant round of outside funding. Whereas earlier stages of the startup might rely on smaller sums of seed funding from friends, family, crowdfunding, and angel investors, the Series A round is the first time most startups raise substantial money to fuel meaningful growth.

During the Series A round, companies typically trade a 10%–30% stake in the company in exchange for preferred stock, so the risk is higher for this particular round of funding. Which investors join, which investors notably don’t join, and the amount raised all speak to where the company stands and—more importantly—where investors see it going.

If you’re a founder of an early-stage startup, you’re probably wondering when to raise your Series A funding. Picking the most advantageous moment to present your pitch deck can be as important as having impressive performance metrics and projections.

There are a few signs that the timing is right for your startup to raise Series A funding.

You have strong traction

The most important factor in timing your Series A funding is traction. Strong month-over-month (MoM) growth is 12%–20% or higher—the sought-after hockey stick growth projection that excites investors.

Start connecting with investors when your MoM growth trend is thriving, and you can offer sound reasons why this is likely to continue or even increase. If your growth is steadily climbing at 5%–10% MoM and you anticipate growth taking an upward turn soon, you might want to wait until then to raise your Series A funding.

You have an active investor network

Build and maintain relationships with investors as far in advance as possible before you plan to pitch them. It’s significantly harder to successfully commit an investor with a cold pitch. Talk to a lot of venture capitalists (VCs), knowing that you won’t pitch to all of them.

You have significant growth

VCs want to support high-growth companies, so make sure your growth metrics are in the right range to appeal to them. Maybe you’re tracking 50% MoM growth, but your revenue is lower than what investors are looking for.

If you’re not sure what level of growth will make investors take notice, ask other founders in your industry or investors in your network who might know. This is another reason to build active relationships with investors before you ever pitch them. They’re usually happy to give insights on what they do and the thinking behind how they do it.

You have demonstrated product-market fit

There’s no set formula for measuring product-market fit, let alone proving it. It’s loosely defined as proof that what your company is doing—what goods or services you provide—is successfully filling an existing gap in the market. Earlier in your startup journey (like when you’re raising seed money), you have to prove that the market opportunity exists and that you and your team have the right idea and skill set to fill it. But when you’re raising a Series A, you need to demonstrate more than potential—you need to show that you’re actually hitting the mark. Make sure you’re highly confident about the story you’re telling to prove product-market fit before pitching for your Series A funding.

Your revenue is growing

Customer metrics like traffic, retention, and engagement are essential measures of company health, but you need revenue growth to get VCs to invest. When revenue growth is there, customer metrics will further validate what’s working and why. Investors want to feel confident that you’re going to make their money grow.

You understand your growth strategy

When you pitched to investors for your seed round of funding, you might have communicated that you would explore a variety of channels for business growth. During the Series A round, investors aren’t looking to finance further experimentation. Instead, they want to hear your plan for driving substantial business growth. Once you are clear and specific about what you can do to accomplish that, then you’re ready to have the conversation that Series A investors want to have.

How to save money when incorporating a business

While some incorporation fees are unavoidable, it’s possible to lower your business’s costs by handling as much as possible in-house and seeking professional help when necessary. Here are a few key strategies for saving money:

• DIY incorporation: If your business structure is straightforward and you’re comfortable with paperwork, filing the incorporation documents yourself can save you hundreds or even thousands of dollars in legal fees. Online resources and guides are available to help you through the process.

• Compare registered agent services: Registered agent fees vary between providers. Compare prices and services from different companies to find the best deal for your needs.

• Consider forming an LLC: Limited liability companies (LLCs) are often simpler and less expensive to form than corporations, making them a cost-effective option for small businesses.

• Choose the right location: Some locations have lower filing fees and franchise taxes than others. Research different places to see which ones have the most favorable business environment for your industry and budget. Delaware is a popular choice in the US for its business-friendly laws and low fees, for example.

• Take advantage of online legal services: Online legal services offer affordable packages that can guide you through the incorporation process and provide templates for necessary documents. Some might even have discounts and promotions for new customers. This can be less expensive than hiring an attorney.

• Negotiate professional fees: If you need to hire an attorney or accountant, don’t hesitate to negotiate their fees. Some professionals might offer discounts for startups or small businesses.

• Plan for ongoing costs: While saving on initial incorporation costs is important, make sure to factor in ongoing expenses such as annual report fees, franchise taxes, and registered agent fees.