The week after Thanksgiving, and the week of Hanukkah (happy holidays) has been full of news but not necessarily enlightening news. Jack Dorsey left Twitter. David Marcus left Meta, Omicron became a variant and the stock markets were super volatile. Also, I spent 3 days in the first SignalRank team offsite. So, if I am not mistaken there is no overriding theme to the week.
In addition, we are not doing a video this week as Andrew Keen is overseas.
So what better than to drill down into the seed investment ecosystem?
Crunchbase News published the latest statistics on the death rate of seed-funded startups. Pitchbook published US venture startup valuation trends, Samir Kaji tweeted a chart showing the seed ecosystem compared in size to the venture and growth ecosystem.
All three helped to shine a light on the early-stage venture funding climate. According to Crunchbase, only 28% of seed-funded startups went on to raise a Series A round (2018 data). The total number of companies funded is large and so too is the death rate.
However, Pitchbook data shows that the valuation of early-stage companies continues to rise. It’s US VC, Q3 2021 valuation report
indicates median valuations have reached $53m and the average valuation is over $135m.