US Seed Funded Startups Growth Trend

An article we liked from Thought Leader Gené Teare:

What Are The Odds Of Success For A US Seed Funded Startup?

Editor’s note: This is the first in a multipart series looking at seed funding trends. Read our earlier analysis of how seed funding has grown in the past 10 years here. 

Seed funding experienced steep growth in the past decade, with more than 40,000 U.S.-based startups raising this early capital since 2011, per Crunchbase data.

With all this growth, are a greater proportion of startups stonewalled at seed? How many of these startups are successfully raising post-seed funding to graduate to the next phase? It turns out that while the odds of raising funding post seed have not changed significantly, per our analysis, raising a large seed round of $1 million and above significantly improves a startup’s chance of subsequent funding.

Let’s dive in.

Sequential funding post-seed

From an analysis of startups that raised their most recent seed or pre-seed funding in the U.S. between 2011 and 2018, we found an average of 1 in 3 startups went on to raise either a Series A or later-stage funding rounds in any subsequent year.

Those odds improve significantly when a startup has raised a seed funding of $1 million or more, Crunchbase data shows. Around a third of seed-stage funded companies raised a $1 million seed round or higher. For those companies, on average, more than 1 out of...

Read the rest of this article at news.crunchbase.com...

Thanks for this article excerpt and its graphics to Gené Teare, senior data journalist at Crunchbase.

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