Why Fewer Companies Are Successfully Raising Series A Rounds

http://blog.eladgil.com/2011/11/why-fewer-companies-are-successfully.html

by eladgil • 15 years ago

11 6 15 years ago

blog.eladgil.com

wensing• 15 years ago

So what do all these startups do that can not raise a series A? A subset sell as a team buy, a few go out of business, but an increasing number are going out for a bridge round. Basically, instead of raising $5 million, I am seeing post-seed startups raise anywhere from $500K to $1.5 millon, at a valuation somewhere between a series A and a seed valuation, with the hope that the additional capital will give them time to gain more traction or scale their business.

A good option for bootstrapped companies that have exhausted their friends and family but aren't ready for gasoline on the fire.

jayliew• 15 years ago

another reason for startups to be ramen profitable!

eladgil• 15 years ago

True point!

randall• 15 years ago

I'm wondering about series B... was it hard to raise Series B? Is Series A the new Series B?

jf7812• 15 years ago

Series B are even tougher than an A round unless you get a tier 1 who will support you... very key to that A round decision

jf7812• 15 years ago

Investors get a free look at the execution savvy of the founders and their idea in the new seed marketplace ...so it's more efficient for the VCs thx to the ycombo and other incubators...people can slam all they want on incubators but its a nice working model...gets more ideas exposed and funded...

cheers John F @siliconangle

Why Fewer Companies Are Successfully Raising Series A Rounds

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