Funding Round Sizes For Early Stage Startups

Table of Contents

How much should a startup raise in each round?

As an early stage startup, securing funding can be a crucial step towards growth and success. However, navigating the world of startup funding can be overwhelming, especially when it comes to determining the appropriate funding round sizes. In this article, we’ll provide an overview of the typical funding round sizes for early stage startups.

Pre-Seed Round 

The Pre-seed round is typically the first institutional funding round for early stage startups, and it’s usually aimed at helping the company get the product in the market and obtain the first traction. The average pre-seed round size is between $100,000  and $500,000. However, some pre-seed rounds can be larger, depending on the needs of the company and the investors involved.

Seed Round 

The seed round is typically the first or second funding round for early stage startups, and it’s usually aimed at helping the company get off the ground. The average seed round size is between $1 million and $2 million. However, some seed rounds can be as small as $100,000 or as large as $5 million, depending on the needs of the company and the investors involved.

Series A Round 

After the seed round, early stage startups usually move on to a Series A round, which is aimed at helping the company grow and expand. The average Series A round size is between $3 million and $15 million, although it can range from $2 million to $20 million depending on the company’s needs and the investors involved.

Series B Round 

Once the company has demonstrated its potential for growth and success, it may move on to a Series B round, which is aimed at helping the company scale and achieve profitability. The average Series B round size is between $7 million and $30 million, although it can range from $5 million to $50 million depending on the company’s needs and the investors involved.

Series C Round 

The Series C round is aimed at helping the company achieve long-term growth and establish itself as a leader in its industry. The average Series C round size is between $20 million and $50 million, although it can range from $10 million to $100 million depending on the company’s needs and the investors involved.

Conclusion 

Securing funding is a crucial step for early stage startups, and determining the appropriate funding round size can be a daunting task. While the average funding round sizes for early stage startups may provide some guidance, it’s important to remember that every company’s needs and circumstances are unique. Ultimately, the key to success is to focus on building a strong team, developing a solid business plan, and finding investors who share your vision and believe in your potential for success. However, raising to much cash to early may be a blocker at a later stage. Read more in this article.

About

dilution.io is a consultancy for early-stage tech startup founders and investors helping them succeed from Pre-seed to Series A.

Tags
Categories
  • No categories

More tools

Looking for more great tools for your startup? Visit Tools & Knowledge.

Newsletter Signup

Fill in To Download