Vital Signs #34: Study: More Than 1,000 Seed-Funded Startups Are Destined To Be ‘Orphaned’ At The Series A Stage
Published by
Scott Jordan
on
There is a lot of buzz about an ongoing “Series A crunch” for tech startups, but it’s ideal to have real data to accompany all the anecdotal stories. So we were glad to see that today, venture capital analysis firm CB Insights released a new seed financing report that digs into some real numbers about the situation.
The good news? The level of Series A funding is actually holding steady, not declining, according to the research. The “crunch” is perceived because of the boom in seed funding, which has brought a greater quantity of startups to the table looking for Series A funding than there had ever been before. Essentially, it’s a supply and demand issue — the supply of Series A money has not fallen by any means, but the demand for it from seed-funded startups is just incredibly large right now.