We just released the most comprehensive benchmark of early-stage funding and seed-stage investor performances in Europe.
Seed-stage founders and early-stage investors should definitely have a look 👇
🔎 How has the funding surge affected the time to Series A, the capital raised pre-Series A, and the conversion rate to Series A? You may be surprised...
And which seed-focused VCs have outperformed these benchmarks?
These are hard questions to be answered because rounds reporting is not standardized and is more a matter of PR than else in many cases (seed rounds of $100M and Series A of $1M).
Together with LocalGlobe, we have standardized over 16,805 funding rounds across 12,957 companies since 2016 to overcome this.
Amazing work by Julien Puls from Dealroom.co and Mish Mashkautsan from LocalGlobe on this work!
💡 Here are a few key insights ...
→ Between 2016-2021, the number of Seed rounds in Europe surged but remained between $1-4M
→ The median time between the seed & series A for the 2016-2018 cohort was 24 months
🔎Within 36 months, for the 2016-2018 cohort:
→ Only 20-25% of companies went on to raise a series A.
→ Companies that had a “seed-focused” fund on board saw a significantly higher series A conversion rate (33%).
→ A small handful of funds had a 50%+ series A conversion rate (2x higher than average)! (LocalGlobe, Kindred Capital VC, Connect Ventures, Fly Ventures, Amadeus Capital Partners, DN Capital, Picus Capital, Forward Partners, Point Nine , Cherry Ventures, Frontline Ventures, 360 Capital)
👀This data is key for:
1️⃣ Founders considering VCs for their seed round (conversion rates from seed to Series A are truly where seed funds add the most value)
2️⃣ LPs looking at allocating to early-stage European VC managers (it takes a long time (7-10 years+ for seed funds to exit investment, conversion rates give an early peak on how promising a portfolio is poised to become in the next few years)
3️⃣ Angels evaluating investment opportunities alongside VC firms
(Post partially inspired by Akhil Paul)
Check out the full report 👇
#startups #venturecapital #technology #entrepreneurship #seedround