Venture round sizes ticked up in Q3 at seed, Series A

Venture round sizes ticked up in Q3 at seed, Series A

Author: Kevin Dowd
Read time:  2 minutes
Published date:  19 October 2023
The median seed deal and median Series A deal both increased on Carta in Q3, the first time that’s been the case since Q4 2021.

Early-stage founders on the fundraising trail, take note: For the first time in nearly two years, seed and Series A deal sizes are both trending up. 

Early data from the third quarter of 2023 puts the median seed funding on Carta at $3.2 million, up 7% from Q2. And the median Series A deal size climbed to $9.1 million, a quarter-over-quarter increase of nearly 20%. The last time median seed and Series A deal sizes both increased in the same quarter was Q4 2021, at the height of the pandemic bull market. 

First Cut Seed and A cash raised - Q3 2023

Median Series A deal size has now trended up for two straight quarters, increasing a total of 30% from Q1 to Q3. That’s a significant boost in the amount of capital these young startups have on hand to hire new workers, build new products, and try to establish themselves as revenue-generating companies. 

On a year-over-year basis, median Series A deal size is flat. Median seed deal size, meanwhile, has decreased by about 9%. These longer-term figures are a reminder of how the early-stage market had fallen off prior to Q3’s gains. 

In addition to round sizes, early-stage valuations are also trending up. The median seed valuation on Carta rose 7% to $14.4 million in Q3, and the median Series A valuation inched up 2% from $39.3 million to $40 million. Here, the signs of an upward trend seem clear: The median seed valuation has risen in two consecutive quarters and the median Series A valuation is up three quarters in a row. 

For a cohort of early-stage founders that’s grown used to doing more with less over the past year-plus, this pairing of higher deal sizes and climbing valuations is a new (and welcome) combination. 

We’ll release full Q3 data on valuations, round sizes, and other private market metrics in the coming weeks. To stay in the know, sign up for Carta’s Data Minute weekly newsletter:

Kevin Dowd
Author: Kevin Dowd
Kevin Dowd is a senior writer covering the private markets. Prior to joining Carta, he reported on venture capital and private equity at Forbes, where he wrote the Deal Flow newsletter, and at PitchBook, where he wrote The Weekend Pitch.