Once you’re in it, you’re in it. #Startup #founders don’t just take financial risk - they invest years of their lives. For many, it’s absolutely worth it. To me, the first task is the most important one: to define your target and make absolutely sure it’s one worth that level of investment.
Venture-backed founders: you really are signing up for a decade. Here's some new data on the time (in years) from the day of incorporation to various funding milestones for software startups. Yes, I know funding milestones aren't everything. But if you're on the venture path then they matter - and speed is a major aspect of the VC growth model. Chart below shows time to primary round (no funny business with bridges or extensions) and is filtered to just software companies (hardware / biotech plays at different timescales). 𝗦𝗲𝗲𝗱 (𝗶𝗻𝗰𝗹𝘂𝗱𝗲𝘀 𝗽𝗿𝗶𝗰𝗲𝗱 𝘀𝗲𝗲𝗱 𝗿𝗼𝘂𝗻𝗱𝘀 & 𝗦𝗔𝗙𝗘𝘀 𝗼𝘃𝗲𝗿 $𝟮𝗠) • Median of 1.8 years from incorporation recently • Up 15% or so from 2019 𝗦𝗲𝗿𝗶𝗲𝘀 𝗔 • Median: 3.1 years from incorp • Up a gentle 10% from 2019 𝗦𝗲𝗿𝗶𝗲𝘀 𝗕 • Median: 4.7 years from incorp, 16% higher than 2019 𝗦𝗲𝗿𝗶𝗲𝘀 𝗖 • Median: 6 years from incorp (and down a little from 2023? Odd.) 𝗦𝗲𝗿𝗶𝗲𝘀 𝗗 • Median bounced all the way to 8.1 years from incorporation So what stands out from this data? Couple points to me. First, obviously companies in the venture ecosystem are staying private longer. We didn't show it in the chart but you can get medians up to 12 years or even higher for Series E, F, etc. Second - founders are definitely skipping stages. The round names are taken from the term sheets themselves, but there's no reason a founder has to hit every funding milestone. Get a seed, make amazing progress, boom jump up to a Series B. Third - damn that's a long time! The "cofounder as marriage" analogy hits hard. Build with the right people 🙏 What else would you want us to analyze through the lens of incorporation timelines? Open to new ideas in the comments! #cartadata #startups #fundraising #founders #venturecapital -------------------- Data on idea stage startups through pre-IPO — new insights out every Thursday morning. Subscribe to the Data Minute at the URL in graphic for your copy!
JT Benton target definition and self-reflection on your true desires - that sounds healthy
CEO @ Rokk3r, I partner with corporations, entrepreneurs, and investors to bring new businesses, products, and services to life.
1wCouldn’t agree more JT Benton. We often say this to partners. First, find an opportunity that is worth the risk!