VC Funnel: Only 1 in 4 Seed funded startup manages to raise a Series A round

Only 1 in 4 startups that attract seed funding manage to raise follow-on funding in the form of a “Series A” round, a study by Venture Intelligence has found.

Out of the about 3,250 startups that had raised seed funding between 2015-2023, only 25% (i.e., 821 companies) managed to raise a Series A round (typically the first round of institutional Venture Capital funding), the study found. However, once a startup attracts a Series A round, its success ratio in raising subsequent rounds of capital, improves quite significantly. For instance, 41% of the companies that raised a Series A during the study period, succeeded in raising a Series B round. And, of the startups that attracted a Series B round, 45% succeeded in obtaining a Series C round. Of the Series C funded companies, 47% managed to raise rounds that were Series D and beyond. (Note: The Venture Intelligence study provides an 18 month window for a company to raise the subsequent round.)