Because most seed rounds are a combination of institutional capital and "friends and family" funds, it's not surprising that seed has surpassed Series As.

-

"One of the biggest catalysts for new startup creation was the launch of Amazon Web Services and cloud computing in the early 2000s—new technologies that drastically reduced the cost and complexity of starting a new tech company. That, in turn, transformed seed funding into its own institutional asset class in the period between 2006 and 2010.

Still, startups that raised Series A funding continued to outpace startups raising seed until around 2009—when seed funding took the lead and began to explode, Crunchbase data shows.

Seed funding surged again in the period between 2011 and 2015, with 5x the number of companies funded at seed compared to the prior five years. By contrast, Series A-funded companies grew at a much slower pace, showing 42 percent growth.

By the 2016-2020 timeframe, there were 23,000 seed-funded companies in the U.S.—up another 30 percent compared to the prior five years. That put seed growth in line with the growth in Series A, where funded startups numbered over 6,800 during that five-year period—up 31 percent over the same period."

-

-

Follow us on:

LinkedIn

Twitter