Venture-backed founders—it's going to take a decade. Maybe more.
Sometimes VC fundraising is a speed-run: 13.9% of companies who raised Series C were under 4 years old when they did so.
Sometimes there are long gaps: 22% of Series C companies were over 9 years old.
Data below is for companies that raised primary rounds in 2024, but the overall pattern of companies staying private longer has been underway for a half decade.
There are companies that start hot and then stall out. There are others who start slowly and then catch fire 5 years in. But most face a period of wandering in the wilderness. As Paul Graham said of startups, "The surest route to success is to be the cockroach of the corporate world".
𝗔 𝗰𝗼𝘂𝗽𝗹𝗲 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝘁𝗿𝗲𝗻𝗱𝘀:
1. It is taking longer. The data below is only priced rounds and the explosion of pre-seed activity means companies may not start their priced equity journey until a few years in.
2. It doesn't just take a long time for the companies that actually work. Even in a startup that ultimately doesn't work out, founders are tied up for years and years.
2. This is influenced by the closed IPO market, of course. But the expansion of private capital into late-stage companies means that many scale-ups that would have naturally turned towards the public market may not feel the need to IPO quickly. Secondary tenders, anyone?
3. Not everyone builds for a public exit. Lots of great outcomes through M&A, etc along the way. In fact the "sweet-spot" for startup acquisitions is usually around Series A.
4. AI impacts these numbers as it has all things in venture. We see AI speedrunners who are back on the "raise multiple rounds in 12 months" vibe from 2021 — but we also see AI companies taking in comparatively little capital and growing fast regardless.
Deep respect for the founders willing to take on this risk!
#startups #founders #startupfunding #fundraising #VC
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