Seed and Series A funding are two of the most important stages in the life cycle of a startup. These early-stage investments provide the necessary capital for startups to develop their products, build their teams, and scale their businesses. In this article, we will take a comprehensive look at seed and Series A funding trends in four charts.
Chart 1: Seed Funding Trends
Seed funding is the first stage of funding for startups. It typically involves raising capital from angel investors, venture capitalists, or crowdfunding platforms. According to data from PitchBook, the number of seed deals has been steadily increasing over the past decade. In 2010, there were 2,500 seed deals, while in 2019, there were over 10,000 seed deals. This represents a four-fold increase in the number of seed deals over the past decade.
Chart 2: Seed Funding by Industry
Seed funding is not evenly distributed across industries. According to data from CB Insights, the top three industries that received the most seed funding in 2020 were healthcare, fintech, and artificial intelligence/machine learning. These three industries accounted for over 50% of all seed funding in 2020. This trend is likely to continue as these industries are expected to grow rapidly in the coming years.
Chart 3: Series A Funding Trends
Series A funding is the next stage of funding for startups after seed funding. It typically involves raising capital from venture capitalists or institutional investors. According to data from PitchBook, the number of Series A deals has also been steadily increasing over the past decade. In 2010, there were 1,000 Series A deals, while in 2019, there were over 4,000 Series A deals. This represents a four-fold increase in the number of Series A deals over the past decade.
Chart 4: Series A Funding by Industry
Similar to seed funding, Series A funding is not evenly distributed across industries. According to data from CB Insights, the top three industries that received the most Series A funding in 2020 were healthcare, fintech, and artificial intelligence/machine learning. These three industries accounted for over 50% of all Series A funding in 2020. This trend is likely to continue as these industries are expected to grow rapidly in the coming years.
Conclusion
Seed and Series A funding are critical stages in the life cycle of a startup. The number of seed and Series A deals has been steadily increasing over the past decade, and these investments are not evenly distributed across industries. Healthcare, fintech, and artificial intelligence/machine learning are the top three industries that received the most seed and Series A funding in 2020. As these industries continue to grow, we can expect to see more investment in these sectors in the coming years.
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