The Seed and Series A startup landscape is confusing and potentially unhealthy right now.
Some data to illustrate what I mean:
The number of actual rounds raised in Seed and Series A is well below 2021 peaks, especially for Series A.
Data includes SAFE rounds of $2M or more (which must be included for Seed unless you want to miss 50% of the volume).
But median post-money valuations are pretty close to peak - everything seems pricey.
So what is this current market?
Founders building today are bombarded by diametrically opposed messages. On the one hand, AI bullishness is pushing up the valuations of AI-native early stage companies, which dominate headlines, which paint a rosy picture of startupland.
On the other, due diligence is taking longer than ever, many funds are not really investing, founders are struggling to find investors and some investors are struggling to win the deals they most want.
And this is all data from before the tariffs went into effect. Whatever your opinion of their validity, it's usually the case that public market turmoil hits the private market at a lag of 3-6 months.
2025 was supposed to be the year of liquidity and "return to normal". I'm just not seeing it right now.
Hang in there, founders 🙏
#startups #founders #seed #SeriesA #fundraising #VC
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