AI and Hardware Lead Hottest Startup Sectors for Seed

AI and Hardware Lead Hottest Startup Sectors for Seed

Author:Β 

Peter Walker

|

Read time:Β 

1 minute

Published date:Β 

October 29, 2025

AI applications top seed funding in 2025 with a $20M median valuation on $4.5M raised, with Hardware and Analytics close behind.

LinkedIn: AI and Hardware Lead Hottest Startup Sectors for Seed

Hottest startup sectors right now:

  • AI applications | $4.5M median raised at a $20M pre-money valuation

  • Hardware | $5.2M median raised at a $19M pre-money val

  • Analytics/Data | $4.8M median raised at a $18.5M pre-money val

  • Cybersecurity | $4.3M raised at a $16M pre-money

  • Social Apps | $4.2M raised at a $18.8M pre-money

Data: 1,208 seed round raised by US startups using Carta in the last 12 months.

Chart: median round size (x-axis) vs median valuation (y-axis). Bigger bubbles = more deals in that sector.

π—’π˜‚π˜ 𝗢𝗻 π˜π—΅π—² 𝗖𝗼𝗹𝗱

  • Personal products

  • Food/Bev

  • Edtech πŸ˜₯

  • Medical Device 😭

π—’π˜π—΅π—²π—Ώ π—‘π—Όπ˜π—²π˜€

  • About 50% of seed deals this year have been done on SAFEs, the other half on priced equity.

  • Lead investors are taking more share in seeds. The median % of the round for the lead has moved from 51% to 61% over the last 12 months.

  • Typically, founders are selling 20% of the company in their seed rounds.

  • SF deals are different than all the other seed deals.

  • About 30% (maybe slightly higher over time) of seed companies will end up raising a bridge financing.

Share with a fundraising founder!

#startups #founders #seed

Peter Walker
Author: Peter Walker
Peter Walker runs the Insights team at Carta, focused on discovering key data and narratives across the private capital ecosystem. In a former life, he was a marketing executive for a media analytics startup and led the data visualization team at the Covid Tracking Project.

DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. Β© 2026 Carta. All rights reserved. Reproduction prohibited.