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Seed funding trends vary wildly by industry. While valuation and cash raised tend to go hand-in-hand, the differences across sectors can be significant. Key Takeaways (based on US seed rounds): Healthtech on the rise: Healthtech has rocketed to become the #2 category, surpassing Fintech. Seed volume slowdown: Seed funding volume is down in most areas, except AI. Interestingly, more seed deals are using SAFEs with similar valuations and cash raised compared to priced rounds by industry. Stragglers in the race: DTC Retail, Food, and Personal Products continue to fall behind. Are founders here looking at alternative funding options like revenue-based models instead of VC? Single-round strategy on the rise: The "venture stripping" or "single-round VC" approach is gaining steam. Founders are aiming to raise just once and then fuel growth through revenue. Bold strategy, but can it build billion-dollar companies? Founders fundraising? Share this post! #SeedFunding #fundraising #startups

The startup landscape is shifting, with trends focusing on tech and healthcare sectors. Economic uncertainties are impacting funding and investor confidence. Early-stage funding, such as Seed and Series A rounds, faces increasing competition, while later stages like Series B demand clear traction and profitability. Investors are meticulous, seeking robust business models and emphasizing sustainability. Founders should consider their market differentiation, financial strategies, growth plans, and investor relations. Addressing these areas can help navigate fundraising complexities and position startups for success.

Seed-stage fundraising looks very different depending on the startup industry. Valuation and cash raised typically move together (not a lot of tiny rounds at very high valuations), but the disparity between industries can be quite large. All data from 1,271 priced Seed rounds raised from Apr 2023 thru Mar 2024. Primary rounds only, US rounds only. Industries had to have 10 separate raises to be included. A note on AI - if you tracked it as a separate industry, it would at the top of every list. But it exists within many of these categories as well, so we displayed it in the chart below as a little red box. 𝗢𝘃𝗲𝗿𝗮𝗹𝗹 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀 1. Healthtech overtook Fintech as the second-largest category in our data, a change from the last time we measured these metrics. 2. Seed volume is down across almost every category save AI (and even there, not up much lately). More seed deals are being completed on SAFEs (not shown in this chart) but the valuations and cash raised are very similar between SAFE and Priced rounds by industry. 3. The laggards in the chart (DTC Retail, Food, Personal Products) are essentially the same as last year. Are founders here turning towards other methods of funding, including revenue, instead of going the VC route? 4. Will many of these companies ever raise a Series A? Lots of talk lately about "venture stripping", "thin VC", "single round VC", whatever you want to call it - founders who explicitly set out to raise only 1 round and then fund their growth with revenue from then on. Very cool strategy! Remains to be seen if many $1B+ valuation companies can be built that way (though of course that isn't always the goal). Please share this post with a fundraising founder 🙏 #cartadata #startups #fundraising #seed #founders ---------- More data like this out every week in our Carta Data Minute Newsletter - subscribe at the link in graphic!

The latest data from Carta shows an interesting trend: HR startups are leading the pack in both median pre-money valuation and cash raised! 🏆 Between April 2023 and March 2024, HR has emerged as the top category among seed rounds, highlighting the increasing importance and value of human resources technology. Here are some key takeaways: Top Category: HR outpaced other industries in both valuation and capital raised. High Interest: Despite usual skepticism, investors are recognizing the potential of HR tech. Broad Influence: AI is a significant driver across industries, but HR tech stands out even without it being tracked separately. This data underscores the crucial role HR technology plays in modern businesses and its potential to drive substantial value. We're excited to be apart of it! #HRTech #Startups #Investment #AI #Innovation #CartaData #Innovation #FutureofWork

The Series A Crunch or the Seedpocalypse of 2024 2012 was the year of the Seedpocalypse. Also called the Series A Crunch, a fear gripped Startupland : raising a Series A. Two years later, this indigestible excessive bolus of fundraising rounds hit the Series B market & Series Bs became the most challenging round to raise. Whenever there are “too many” of fundraises of one type, the next round becomes the hardest to raise. In 2024, the Series A Crunch has returned. Software companies that have achieved the previous era’s milestone, $1m or more in ARR, face a challenging Series A market. Why is this happening again? Just as in 2012, a surge in seed investments met a relatively stable Series A market. The supply/demand imbalance creates a funding squeeze. The orange crush of seed investment has outpaced the growth in Series A & Series B rounds. Many new seed funds started & the rate of company formation surged during the early 2020s driven by an ebullient capital markets. Also, the definition of a Seed round has changed. The Seeds of the 2010 era are the pre-Seeds of today, making the comparison impure. Regardless, Series As haven’t grown to nearly the extent of Seeds. During the last 14 years, the ratio of Seeds to Series As has grown from about 1.1 to 1, to 5 to 1. Meanwhile, the ratio of As to Bs is relatively constant : between 3 & 4 to 1. With excess seed supply & in an era where forward public software multiples have reverted to the mean from their stratospheric levels, Series A rounds are harder to raise. AI startups, the darlings of the current era, are a notable exception. In this category, the heady multiples of 2021 & 2022 still apply. Source: Powered by V3V Ventures

Interesting shifts in the funding landscape! While big AI deals are grabbing headlines, it's crucial for startups to stay nimble. The rise in high valuations and investor protections are notable 💡 Let’s stay informed and adapt to these changes to keep pushing forward! #StartupLife #VentureCapital

Seed-stage fundraising looks very different depending on the startup industry. Credits to Peter Walker, follow for more useful Infographics. ------ Here's the original post: Seed-stage fundraising looks very different depending on the startup industry. Valuation and cash raised typically move together (not a lot of tiny rounds at very high valuations), but the disparity between industries can be quite large. All data from 1,271 priced Seed rounds raised from Apr 2023 thru Mar 2024. Primary rounds only, US rounds only. Industries had to have 10 separate raises to be included. A note on AI - if you tracked it as a separate industry, it would at the top of every list. But it exists within many of these categories as well, so we displayed it in the chart below as a little red box. 𝗢𝘃𝗲𝗿𝗮𝗹𝗹 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀 1. Healthtech overtook Fintech as the second-largest category in our data, a change from the last time we measured these metrics. 2. Seed volume is down across almost every category save AI (and even there, not up much lately). More seed deals are being completed on SAFEs (not shown in this chart) but the valuations and cash raised are very similar between SAFE and Priced rounds by industry. 3. The laggards in the chart (DTC Retail, Food, Personal Products) are essentially the same as last year. Are founders here turning towards other methods of funding, including revenue, instead of going the VC route? 4. Will many of these companies ever raise a Series A? Lots of talk lately about "venture stripping", "thin VC", "single round VC", whatever you want to call it - founders who explicitly set out to raise only 1 round and then fund their growth with revenue from then on. Very cool strategy! Remains to be seen if many $1B+ valuation companies can be built that way (though of course that isn't always the goal). Please share this post with a fundraising founder 🙏 #Startup #innovation #entrepreneurship #sustainability #investing #networking #venturecapital

Innovation shouldn't be bound by geography, yet capital deployment into startups remains very regionally focused. Very few surprises on this list from Peter Walker at Carta. We love venture studios because they kickstart innovation - no matter where they are. Here are a few venture studios, VC firms and innovation drivers we see doing big things in markets you might not think of as being leading startup or investment hubs: High Alpha - Indianapolis gener8tor - Started in Madison, Wisconsin Early Stage Montana - Montana Next Frontier Capital - Mountain West Where are you seeing innovation happen? Sound off in the comments! #VentureStudios #VentureCapital #Startups #TargetsOverEverything HT: Jonny Boyarsky

Big update on startup funding: U.S. venture capital funding jumped in Q2 2024, but fewer startups are getting that cash. 📊 https://pst.cr/JP1Ar PitchBook and the National Venture Capital Association shared some interesting data. Lots of money is going into just a few huge AI deals. 🤖💰 So, what does this mean for you? • High Valuations, But...: Growth deal valuations hit $238M median, driven by unicorns coming back after a break. • Female-Founded Funding Down: Less funding for female-founded startups compared to last year and 2021. • More Investor Protections: More focus on cumulative dividends in deals. The startup world is always changing. Stay sharp and flexible in navigating these shifts. Remember, major VC hubs like SF, NYC, LA, and Boston are dominating both large deals and early-stage funding, especially in AI. 💡 What do you think about these trends? Share your thoughts or questions in the comments! Let's discuss how we can adapt and thrive in this changing landscape. 💬 #StartupLife #VentureCapital #AIStartups #FundingTrends #Innovation #sviyp #siliconvalleyinyourpocket

Startup shutdown has increased by 60% compared to the previous year A lot of money is being poured into AI in the U.S., yet startups are shutting down at a staggering rate. According to Carta, 254 venture-backed startups closed shop in just the first quarter of this year. That’s over seven times more than in 2019. It’s not just bad luck— it's the reality of today’s brutal startup ecosystem. The fundraising crunch is real, And it’s hitting hard across all stages of venture funding. Prior success or funding doesn’t guarantee survival in this climate. Startups that raised rounds in 2021 are now struggling to secure new investments, with many forced to shut down. The lesson here? The startup world is unpredictable and unforgiving. If you’re in it, brace yourself, adapt, and always be ready for the unexpected. Remember, survival isn’t just about raising money—it’s about staying ahead of the curve. ___________ Follow Sneha Chandrappa for the latest trends and Market insights ✅ #startupnews, #markettrends #marketanalysis #markettrends #latest #trends #ai #usp #fundraising #success #failed Reference Data Source: "Startup shutdowns continued to accelerate in Q1 2024" Author: Kevin Dowd *AI-generated image for illustration only