Startup fundraising success statistics and general guidelines on what to focus on - CAGR as a driver

January 13, 2023

According to a report by Crunchbase, the median amount raised by startups in the seed stage in 2020 was $1.3 million. The median amount raised by startups in the series A round was $5 million, and the median amount raised by startups in the series B round was $15 million.

It is important to note that these are just median amounts, and some startups may raise significantly more or less than these amounts. Additionally, the amount of funding a startup is able to raise can vary based on a number of factors, including the stage of the company, the industry it is in, and the strength of its business model.

In terms of success rates, it is worth noting that the chances of a startup raising funding can vary significantly based on its stage. For example, according to a report by Gust, the acceptance rate for seed stage startups was about 9% in 2020, while the acceptance rate for series A and series B rounds was around 22% and 32%, respectively.

It is also worth noting that the fundraising process can be time-consuming, with the average time to close a funding round ranging from 3-6 months, depending on the stage of the company.

Here are a few more statistics on the startup and fundraising landscape, highlighting what you as a founder can focus on to get ahead and fundraise effectively:

  • According to a report by Startup Genome, the top-performing startups globally had a median CAGR of 82% over a three-year period.
  • The National Venture Capital Association reported that in 2020, venture capital firms invested a total of $179 billion in startups, with the median deal size being $12 million.
  • According to a report by AngelList, the average angel investment in 2020 was $75,000, with the average angel investor participating in 3.3 deals per year.
  • A report by First Round Capital found that the most common sources of seed funding for startups were personal savings (44%), followed by friends and family (35%), and angel investors (20%).
  • A survey by Fundable found that the top challenges cited by startups when raising funds were a lack of investor interest (44%), difficulty in demonstrating traction (39%), and a lack of a clear path to profitability (35%).

Overall, these statistics highlight the importance of CAGR and revenue growth in the startup world, as well as the challenges that startups often face when raising funds.