Startup funding rounds get bigger as investors back seasoned founders

Seed rounds over $3 million now account for 50% of all funding, sub-$1 mn rounds have fallen to a third of their 2017 levels

Investors are writing bigger checks for early-stage startups, a shift driven by experienced founders, longer product-market fit cycles, and a maturing venture ecosystem.

 

While seed funding rounds have declined in number, the capital raised per round has surged since 2021, often exceeding $3 million in recent deals, according to industry experts.

 

"There are more second-time founders and more seasoned operators that are raising money earlier. As a result of that, you are seeing them raising larger money upfront because they have a demonstrated track record in a previous business and they are carrying investors, who backed them earlier, with them,"