Series A to Series B is a major mountain to climb.
Data: 10,562 US startups who raised a Series A from 2018-2025.
𝗕𝗶𝗴 𝗙𝗶𝗻𝗱𝗶𝗻𝗴
When you raised your Series A really, really matters. The graduation rate fluctuates wildly with the market and that is out of the founders' control.
𝗟𝗶𝘁𝘁𝗹𝗲 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀
Raising your Series A in 2020 was boom times. 20% got to B within 1 year and 40%(!) got to B within 2 years. Rounds were basically on sale, 2 for 1.
Raising your Series A in 2022 was hard mode. Only 8% got to B within a year and 10-12% within 2 years. Interest rates matter, it turns out.
Raising your Series A in 2024 was not easy, but improving. 11% graduating in 1 year, looking like 20% or so by year 2. I'd call this "tough but normal-ish".
In a strong cohort, about half of Series As will go on to raise Series B. The rest will either a) not need any more capital (pretty rare), b) get acquired (rare), or c) struggle on before shutting down (most of them).
This founder thing is anything but easy 🙏
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