💥Time Between Funding Rounds, Startup Success Predictors, Changing Founder Positions, Mid-Market Struggles & More
Digesting Insights From the Data
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Time Between Funding Rounds: Magic Number 18
Carta’s latest analysis of funding rounds reveals that startups follow diverse paths when raising funds, with some moving swiftly through the rounds, while others take years to secure capital. Though fast growth is often celebrated, long-term success isn’t always tied to speed, and slower-moving startups may be laying the groundwork for future triumphs.
Seed round movers: In 2024, 32% of startups raising a priced seed round were founded in 2023, but some date back to 2017.
Series B spread: 16% of Series B fundraisers were from 2019 startups, while 4% came from companies founded in 2023.
Older Series D rounds: 18% of Series D fundraisers this year trace back to 2016, showing how the venture landscape supports long-term growth.
✈️ KEY TAKEAWAYS
Startup success isn’t always a sprint. Some companies need time to mature, and although quick funding boosts valuations, slower paths can lead to sustained success too. In short, the median is 1y from incorporation to Seed, 3y to Series A, 4.5y to Series B, and 6y to Series C. Said differently, one round every 18 months seems to be the rule of thumb.
Predicting Success for Seed Startups
An analysis by Adam Shuaib of every seed startup in Europe since 2010 reveals valuable insights about success predictors.
Top talent matters: The ability to hire top talent post-raise is one of the strongest success indicators.
Experience isn’t key: Founders with less than five years of experience were just as likely to raise funds as those with 15+ years.
Speed counts: Startups raising a seed round within one year of incorporation were more than twice as likely to reach Series A/B compared to those that took four or more years.
✈️ KEY TAKEAWAYS
Speed and the ability to hire top talent outshine experience and educational background. Fast action and strong teams seem to be the real predictors of long-term startup success.
The New Normal for SaaS Growth in 2024
According to the latest SaaS Retention Report by ChartMogul, SaaS companies are entering a new era of slower, sustainable growth. While expansion remains important, net revenue retention (NRR) is becoming increasingly difficult to maintain at 100%, especially for companies with larger subscriber bases.