Seed startups fail all the time.
But here's the thing: so do Series A and Series B startups.
Data below shows what percent of startups in each stage get to the next stage after 2 years. Date on the X axis reflects the quarter when the initial round was raised.
Yes, I realize startups can graduate to the next round in years 3, 4, etc. I get it.
But these lines are super close together! Meaning the actual improvement in graduation rates between stages is fairly minimal.
If 50% of seed startups are likely to fail, then maybe 48% of Series A startups will and 45% of Series B startups, etc etc.
Series A and B startups are slightly more likely to get acquired, that's true. But again the percentage difference is low single digits.
All of this is to say:
VCs - a startup that gets to Series B is still very likely to flop.
Founders - it doesn't get easier, unfortunately.
Employees - You need to factor in risk to your startup decision alongside comp.
This stuff ain't easy!
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