What Startups Really Need from VCs at Series A and B Stages

Startups today are realising that funding alone doesn’t guarantee growth. What truly sets a venture partner apart is their ability to act as a strategic ally—guiding decisions, opening networks, and helping teams scale efficiently.

• Many founders still assume VCs are mostly cheque-writers.

• But firms like TNB Aura are reshaping that model by offering operational insight, regional expertise, and long-term vision alignment.

• Choosing the right VC isn’t just about valuation—it's about matching the startup’s needs with the fund’s strengths and investment thesis.

Startup Needs at Series A: Building the Foundation

Tactical Advice and Strategic Soundboarding

Series A founders often need real-time input on decisions that shape their business model. Whether it’s refining pricing, sharpening customer segmentation, or choosing the right GTM channels, VCs can act as strategic sounding boards. Not by dictating the playbook—but by drawing from experience with similar startups and asking the right questions to challenge assumptions.

Recruiting Key Talent

The first wave of leadership hires can define the culture, operational maturity, and execution velocity of a company. VCs who have built teams before—and have access to trusted recruiters, advisors, and former operators—are invaluable here. Series A is when roles like Head of Product, Engineering Leads, or GTM strategists come into focus, and the right introductions can save months of search time.

Product and Market Feedback

Founders often operate deep within the product—sometimes too deep to see external shifts. A good VC brings market context, competitor awareness, and real-user feedback from other portfolio companies. This helps startups stress-test roadmaps, pricing models, and even positioning before going too far in the wrong direction.

Preparing for Next-Round Metrics

One of the most underrated VC contributions at Series A is helping founders reverse-engineer Series B readiness. That includes setting up the right dashboards, defining which metrics matter (CAC, LTV, churn, burn), and building internal reporting discipline early. Many startups stumble here—not because they don’t hit targets, but because they never learned to measure them properly.

Startup Needs at Series B: Scaling Up Sustainably

By the time a startup hits Series B, it's no longer about proving the model—it’s about scaling it with discipline. The challenges shift from validation to execution. And while capital helps, it’s the right kind of support that enables sustainable growth.

Organisational Maturity

Series B companies must evolve from scrappy teams into structured organisations. That means setting up finance functions, legal and compliance protocols, and scalable HR systems. VCs who have supported this transition before can help startups avoid common pitfalls like underinvesting in back-office operations or over-hiring without structure.

Global Expansion or Market Deepening

Depending on the business, Series B is often the point where companies either:

• Go deeper into their current market with better coverage, or

• Expand geographically or into adjacent verticals.

The right VC provides more than just encouragement—they connect founders to regional experts, global operators, and trusted legal or regulatory advisors across markets.

Support in Follow-On Funding and Exit Planning

At this stage, startups must start planning for Series C, strategic partnerships, or M&A possibilities. A growth-stage VC with strong ties to crossover funds or strategic acquirers helps ensure those next steps are viable. Good VCs also help shape the narrative for these future investors, long before the next raise begins.

Board Governance and Executive Coaching

As the board becomes more structured, founders need to manage governance alongside growth. The best VCs bring seasoned board presence—offering advice on managing internal conflict, reporting, and strategic planning. They also recommend executive coaches or leadership development programmes to prepare founders for the demands of scale.

What the Best VCs Actually Do at Each Stage

While pitch decks often showcase bold claims and glossy exits, the real value of a VC is seen in the messy middle—between rounds, during hiring crunches, when growth stalls, or when markets shift. The best venture partners consistently show up with empathy, clarity, and follow-through.

Success in Action: What “Good VC Behaviour” Looks Like

• During Series A:
  A VC jumps on a Sunday night call to prep a founder for a critical enterprise pitch. They don’t micromanage—but they help shape the story.

• During Series B:
  Instead of pushing for expansion into new markets blindly, a VC introduces local partners in a target geography and flags regulatory hurdles ahead of time.

• In Hiring:
  Great VCs don’t just “forward resumes.” They personally vouch for candidates, help close top-tier hires, and mediate role scope or compensation discussions.

• In Downturns:
  Rather than disappearing when numbers dip, they help reframe board conversations and guide the company through resets or pivots.

Key Differentiators of Great VCs

Pitfalls of the Wrong VC-Startup Match

Not all capital is created equal. The wrong VC partner—no matter how reputable or well-funded—can create friction that slows growth, strains morale, or leads a startup off course. These mismatches often become visible only after the term sheet is signed.

Overbearing Involvement at Series A

Some VCs promise hands-on support but end up interfering with day-to-day decisions. Common issues include:

• Micromanaging product roadmaps without real context

• Pushing founders to hire prematurely or change strategy based on “pattern recognition”

• Replacing trust with control—eroding the founder’s confidence and team cohesion

Startups at Series A need collaboration, not command.

Lack of Scalability Support at Series B

Conversely, some early VCs struggle to scale their support. As startups grow, they need investors who can:

• Connect them to international markets

• Help them professionalise operations

• Prepare them for strategic exits or Series C

If a VC can’t keep up with the company's complexity, they become more of a passenger than a partner.

Misaligned Expectations on Growth and Exit Timeline

VCs focused on fast returns may push for unsustainable growth or premature exits. This often leads to:

• Burnout from unrealistic growth targets

• Wasted spend on expansion before operational readiness

• Tension in the boardroom over timelines and strategy

Startups should look for alignment not just on what the business is, but how long and how hard the journey will be.

Conclusion: Choose VCs for Capability, Not Just Capital

Venture capital isn’t just about raising funds—it’s about choosing the right partner to help you grow, pivot, and scale. From Series A to Series B, a startup’s needs evolve rapidly, and the VC’s role must evolve with them.

At Series A, founders need guidance: someone who can help define the company’s DNA, support early hiring, and offer feedback with conviction but care. At Series B, the stakes rise. The startup must scale infrastructure, expand into new markets, and answer to more formal governance structures. The VC must bring operational depth and long-term strategic vision.

Across both stages, what matters most isn’t just capital—but capability:

• Can the VC deliver when it’s not glamorous—during hiring crunches, product rewrites, or missed quarters?

• Do they have empathy for the founder journey, or just enthusiasm for metrics?

• Are they building a relationship, or managing a portfolio?

The best founders evaluate VCs like co-founders—not just backers. Because while funding buys you time, the right VC buys you focus, clarity, and trajectory.