What the numbers say: Seed startups are taking longer to raise funding from their subsequent Series A rounds. Crunchbase data shows that the median time taken by startups that raised $1M or more at their seed funding rounds are taking 25 months to raise their following Series A rounds in Q1 2023, up from 21 months in 2022. The time taken is higher than its previous peak of 24 months in 2020 and nearly twice longer than the 14 months in 2014. What happened: Seed startup funding has shown resilience to the funding pullback. With more seed-funded companies in the pipeline than ever before, more startups will be vying for the Series A rounds. Investors are also taking longer to ink deals to ensure proper due diligence is being conducted.
Where to see the impact: The market is expected to be flooded with 4,400 startups looking to raise Series A rounds, 2,200 of which have not raised any new post-seed funding since 2021, with the rest not doing so since last year. |
