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This whole thread is leaving me very confused. Series A is the first priced round. You're saying only a small percentage of tech companies raise a priced round?

mtremsal 2y ago
A significant portion of startups that raise a Seed round (or equivalent) never get to a Series A. Maybe 30 to 50% fail at this stage.
- adastra22 2y ago
  Are we talking about just YC-style internet/app startups? Two of my startups have been deep tech where you can't do shit without a Series A, and the third was crypto in the start of that boom where VCs were begging to lead your Series A. So maybe I just work in a vastly different field.
  - quartesixte 2y ago
    Yeah deep-tech (which I am also in) plays on a different scale when it comes to funding rounds, simply because of how expensive hardware is and how big the headcount gets to just make MVPs. My friends in software startups balk at the sheer burn rate and funding rounds at mine. $100mm for a Series A is unheard of in software. Thank you Thiel for setting the bar so high (the famous, "you need $1billion in total capital to successfully pull off hardware startups" quote).
    - mtremsal 2y ago
      > $100mm for a Series A is unheard of in software. Peak 2020: https://www.wiz.io/blog/wiz-comes-out-of-stealth-with-100m-series-a-funding-to-reinvent-cloud-security https://www.wiz.io/blog/wiz-comes-out-of-stealth-with-100m-s...
  - throwaway2037 2y ago
    What is "deep tech"? Like, not a CRUD web app? Hardware? AI/ML?
    - adastra22 2y ago
      Fusion, fabs, manufacturing, defense, etc.
rytill 2y ago
As you noted below, it depends on the industry. But for software, and my impression is that it is even more like this in most other industries, a huge amount of tech ventures never receive any funding. Many of these are never even properly incorporated and may not be included in datasets. Then, for the ones that do raise seed money, usually with SAFEs, 50-60% of them would fail before raising a significant priced round (series A). The overall point being, there’s a lot of risk between starting a company and raising a sizeable priced round for most people.
DandyDev 2y ago
The company I work for raised a $1M pre-seed round, $10M seed and $25M series A I imagine other companies went through a similar scenario but failed before series A

mtremsal 2y ago

A significant portion of startups that raise a Seed round (or equivalent) never get to a Series A. Maybe 30 to 50% fail at this stage.

adastra22 2y ago
Are we talking about just YC-style internet/app startups? Two of my startups have been deep tech where you can't do shit without a Series A, and the third was crypto in the start of that boom where VCs were begging to lead your Series A. So maybe I just work in a vastly different field.
- quartesixte 2y ago
  Yeah deep-tech (which I am also in) plays on a different scale when it comes to funding rounds, simply because of how expensive hardware is and how big the headcount gets to just make MVPs. My friends in software startups balk at the sheer burn rate and funding rounds at mine. $100mm for a Series A is unheard of in software. Thank you Thiel for setting the bar so high (the famous, "you need $1billion in total capital to successfully pull off hardware startups" quote).
  - mtremsal 2y ago
    > $100mm for a Series A is unheard of in software. Peak 2020: https://www.wiz.io/blog/wiz-comes-out-of-stealth-with-100m-series-a-funding-to-reinvent-cloud-security https://www.wiz.io/blog/wiz-comes-out-of-stealth-with-100m-s...
- throwaway2037 2y ago
  What is "deep tech"? Like, not a CRUD web app? Hardware? AI/ML?
  - adastra22 2y ago
    Fusion, fabs, manufacturing, defense, etc.

rytill 2y ago

As you noted below, it depends on the industry. But for software, and my impression is that it is even more like this in most other industries, a huge amount of tech ventures never receive any funding. Many of these are never even properly incorporated and may not be included in datasets. Then, for the ones that do raise seed money, usually with SAFEs, 50-60% of them would fail before raising a significant priced round (series A). The overall point being, there’s a lot of risk between starting a company and raising a sizeable priced round for most people.

DandyDev 2y ago

The company I work for raised a $1M pre-seed round, $10M seed and $25M series A I imagine other companies went through a similar scenario but failed before series A