Deep dive into Q3 2023’s funding landscape

Published 17 October 2023


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.