Jamesin Seidel, Investment Partner at the VC fund Chapter One, has analyzed Q3 data on the funding landscape from Crunchbase, based on US-based investments. Key takeaways include:
- Decrease in funding rounds and cash: The market saw a significant drop in venture funding across all stages of 38% less cash year-over-year and 36% fewer investment rounds year-over-year.
- 16% increase in AI funding: AI startups experienced a 16% year-over-year increase in funding, primarily in Seed and Series-B stages.
- AI dominance: AI constituted 18% of Seed funding, 16% of Series-A, and 27% of Series-B funding in Q3 2023.
- Early-stage round size increase: Early-stage round sizes increased, with median Seed round at $3M and Pre-Seed at $1.5M.
- Seed to series-A graduation rates: The graduation rate from Seed to series-A dropped from 23% (2020) to 5% (2022 cohort), possibly due to factors such as delayed fundraising efforts or companies struggling to reach Series-A milestones.
Read the full analysis here.
