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Why Fewer Companies Are Successfully Raising Series A Rounds
- wensing 15y agoSo what do all these startups do that can not raise a series A? A subset sell as a team buy, a few go out of business, but an increasing number are going out for a bridge round. Basically, instead of raising $5 million, I am seeing post-seed startups raise anywhere from $500K to $1.5 millon, at a valuation somewhere between a series A and a seed valuation, with the hope that the additional capital will give them time to gain more traction or scale their business. A good option for bootstrapped companies that have exhausted their friends and family but aren't ready for gasoline on the fire.
- jayliew 15y agoanother reason for startups to be ramen profitable!
- eladgil 15y agoTrue point!
- randall 15y agoI'm wondering about series B... was it hard to raise Series B? Is Series A the new Series B?
- jf781 15y agoSeries B are even tougher than an A round unless you get a tier 1 who will support you... very key to that A round decision
- jf781 15y agoInvestors get a free look at the execution savvy of the founders and their idea in the new seed marketplace ...so it's more efficient for the VCs thx to the ycombo and other incubators...people can slam all they want on incubators but its a nice working model...gets more ideas exposed and funded... cheers John F @siliconangle